Let’s try an experiment. I’m going to give $100 to you, a loyal reader of this blog. But there’s a catch. (Isn’t there always?) You have to share it with another blog reader. He or she will decide how to split the money. If you accept the deal, you both get to keep the money. If you refuse, neither of you gets to keep the money.

Do you accept 50/50? Or do you insist on the larger share? (I am giving the money to you, after all.) Will you take 80/20? 99/1?

I’ve been reading Richard Thaler’s Misbehaving: The Making of Behavioral Economics — a very interesting read, despite the title. This thought experiment has a lot to say about human nature. (Writers: think characterization!)

What do you decide? Let us know in comments.



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