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How to Give in to Threats (without incentivizing them)
Roman Brovko3mo10

Is there any proof that you shouldn't incentivize threats? Consider two situations:

  1. Someone tells you "Give me $5 or I'll destroy your $10".
  2. You are the first player in the Ultimatum Game. The second player tells you "Offer me $5 or I'll reject your offer".

Should you ignore the first threat but give in to the second one (instead of offering $0)? If yes, what is the difference between these cases?

The only difference I see is that in Ultimatum Game you get $10 from the third person (experimenter) before the "threat". But is this important for the decision? 

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