Economics · Microeconomics

Bargaining and the Ultimatum Game

Run a behavioural-economics lab on yourselves, derive the Rubinstein alternating-offers equilibrium, and design Aldebran's counter-offer to a 15% price-cut demand from its largest customer — integrating game-theoretic structure (BATNA, discount factors, repeated games) with behavioural texture (inequity aversion

3 rounds Executive English, Español

Preview

About this simulation

Run a behavioural-economics lab on yourselves, derive the Rubinstein alternating-offers equilibrium, and design Aldebran's counter-offer to a 15% price-cut demand from its largest customer — integrating game-theoretic structure (BATNA, discount factors, repeated games) with behavioural texture (inequity aversion, anchoring, fairness signalling).

Who it is for

An advanced simulation for participants used to working with the main frameworks and trade-offs of the subject, designed for executive education and experienced professionals.

How a session runs

  1. The instructor creates a session from the Eureka dashboard and invites the participants.
  2. Participants play 3 rounds. In each one they submit their decisions and the simulation calculates the results.
  3. The simulation can be run in English, Español.
  4. The instructor follows each participant's progress and results from the dashboard, and uses the class results for the debrief.

Decisions participants make

The decisions participants make during the simulation:

  • Your offer to the Responder (% of €100)
  • Common discount factor δ
  • Your proposed share for yourself (%)
  • Price concession to Norvenor (%)
  • Contract duration (years)
  • Escalator clause linked to input-cost index
  • Joint engineering programme (3-4% cost-out by year 2)
  • Communication frame

Subjects covered

Designed for courses in Microeconomics.

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