PUP-3002 Lecture Notes - Lecture 4: Ultimatum Game, Social Insurance, Nash Equilibrium
5 Apr 2018
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How evenly income is distributed across citizens of a population . If high- the majority of wealth is owned by a small proportion of citizens . If low-wealth is evenly distributed across population . While people view income inequality as a problem, they often do not favor government intervention to fix it---social insurance and redistribution. A system of compulsory contribution to provide government assistance in sickness, unemployment, etc. Receiving benefits is conditional on payment into social insurance programs . Social insurance is generally viewed somewhat positively by the public. Taking from those who have more; giving it to those that have less . Generally seen as less favorable by the public as compared to social security and unemployment insurance. A man on a corner is begging for money . Step 1: player 1 makes a choice on how much to share (if any) and keeps the rest . Step 2: player 2 can accept the deal or reject.
