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Fehr-Schmidt model and the Ultimatum Game [Economics]

  1. Jul 20, 2012 #1
    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:
  2. jcsd
  3. Dec 26, 2015 #2
    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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