How Does Being Trusted Affect Sharing? Findings from the Ultimatum Game

Abstract

According to economic models, individuals are rational, possess full knowledge, and strive to maximize their utility beyond their actual characteristics. Nevertheless, in the real world, people shape their behavior within a social structure and can display altruistic attitudes. This study investigates how trust facilitates sharing among individuals. To determine this, the Ultimatum Game was conducted with 412 participants. Three cases were determined, and the bidder was instructed to divide 10 thousand TL first in the typical game. Afterward, it was said that the other person was in need, and the bid was requested to be renewed. At the last stage, bids were received if there was any doubt about the needy. According to the typical game, people are more empathetic towards those in need and offer 6667 TL rather than 4264 TL. However, when a question of reliability is raised, 4658 TL is offered regardless of need. The findings show that the neoclassical economics concept of homo economicus, which seeks to maximize utility, is not valid in real life.