Fehr-Schmidt model and the Ultimatum Game [Economics]

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SUMMARY

The discussion centers on the Fehr-Schmidt model and its application to the Ultimatum Game, specifically addressing the calculation of the first derivative s'(α2) = α2/(1+α2). The participant questions whether this expression represents the derivative of the proposal function s(α2) = α2/(1+α2) or merely its explicit form. Another participant suggests that the solution involves calculating under the condition that utility remains greater than zero when the proposer offers less than 0.5, providing clarity on the approach needed to resolve the confusion.

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Kolmin
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I am perfectly aware that an answer to this question could take slightly more than the usual, but this thing is making me nut. I don’t get if I make some sort of mistake in terms of calculation or if the authors use a peculiar notation.

This is the paper that I am referring to, in particular page 826-828.

My problem is with s'(α2)= α2/(1+α2).
It seems to me, this cannot be the first derivative of the proposal that has to be made as a function of the parameter α2. Instead, it is simply the explicit version of s(α2)= α2/(1+α2) [then, no derivative around...]

Do I miss something?

Thanks for your feedbacks. :smile:
 
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hey. this is fairly easy. just calculate conditioned on the fact that utility should be bigger than 0, when proposer offers smaller than 0.5 :)
 

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