A note from Daniel

Suppose somebody gives me ten dollars and tells me to share it- some, all, or none- with you. If you accept my offer, we both get to keep the money. If you reject it, neither of us gets anything. If I offered you six dollars (keeping four for myself), would you take it? Almost cer-tainly. If I offered you five, you'd probably take that, too. But what if I offered you two dollars? Would you take it? In an experiment rep-licated around the world, most people rejected offers of two dollars and below." That makes no sense in terms of wealth maximization. If you take my offer of two dollars, you're two dollars richer. If you reject it, you get nothing. Your cognitive calculator knows two is greater than zero- but because you're a human being, your notions of fair play or your desire for revenge or your simple irritation overrides it.

Daniel Drive, page 27 · June 8, 2023 Save to shelf
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