Editing Dictator game (section)

==Description==
The dictator game is a derivative of the [[ultimatum game]], in which one player (the proposer) provides a one-time offer to the other (the responder). The responder can choose to either accept or reject the proposer's bid, but rejecting the bid would result in both players receiving a payoff of 0. In the dictator game, the first player, "the dictator", determines how to split an endowment (such as a cash prize) between themselves and the second player<ref name="andreoni">{{cite encyclopedia |author1-last=Andreoni |author1-first=James |author2-first=William T. |author2-last=Harbaugh |author3-first=Lise |author3-last=Vesterlund |encyclopedia=The New Palgrave Dictionary of Economics |publisher=Palgrave Macmillan |location=London |date=2008 |doi=10.1057/978-1-349-95121-5_2789-1|isbn=978-1-349-95121-5 |pages=1–7 |chapter=Altruism in Experiments }}</ref> (the recipient). The dictator's action space is complete and therefore is at their own will to determine the [[Financial endowment|endowment]], which ranges from giving nothing to giving all the endowment. The recipient has no influence over the outcome of the game, which means the recipient plays a passive role.

While the ultimatum game is informative, it can be considered an over simplified model when discussing most real-world negotiation situations. Real-world games tend to involve offers and counteroffers while the ultimatum game is simply player one placing forward a division of an amount that player 2 has to accept or reject. Based on this limited scope, it is expected that the second player will accept any offer they are given, which is not necessarily seen in real world examples.<ref name="Watson" />