This is how the game works. #jordanpeterson #podcast #jayshetty

Behavioral economists study a game where one person proposes splitting $100 with another, illustrating how people, contrary to classical economics' self-maximizing view, tend to split it 50/50. This suggests that people consider factors like reputation and future interactions, prioritizing fairness and reciprocity, even if it means foregoing potential maximum individual gain.

The $100 Game

• 00:00:00 In a game where one person proposes splitting $100 with another, participants across cultures offer a 50/50 split, violating classical economic theory, which posits that people act in their self-interest. This suggests that people are not purely self-interested, but value factors like fairness and reciprocity when interacting with others.

Reputation and Reciprocity

• 00:00:50 The tendency to split the money fairly is likely due to the fact that people don't usually engage in one-off interactions. Establishing a reputation for fairness and reciprocity can lead to more opportunities for cooperation and interactions in the future. This indicates that humans value the long-term benefits of a positive reputation over immediate gains, aligning with the 'Abrahamic Adventure' and the importance of reciprocal relationships.