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Psychiatry Research 157 (2008) 39 – 46


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Ultimatum bargaining behavior of people


affected by schizophrenia
Nirit Agay a , Shmuel Kron b,c , Ziv Carmel b,c,⁎,
Shlomo Mendlovic b,c , Yechiel Levkovitz b,c
a
The Raymond and Beverly Sackler Faculty of Exact Sciences, School of Mathematical Sciences, Tel-Aviv University, Ramat Aviv, Israel
b
The Sackler Faculty of Medicine, Tel-Aviv University, Ramat Aviv, Israel
c
Shalvata Mental Health Center, P.O.Box 94, Hod-Hasharon, 45100, Israel
Received 13 June 2005; received in revised form 24 December 2005; accepted 2 March 2006

Abstract

Forty-nine people suffering from schizophrenia performed an interactive bargaining task involving small monetary rewards,
known in classical game theory as the Ultimatum Game. In this task, the subject, in the role of the Proposer, has to offer his or her
(anonymous) counterpart, the Responder, a share of a given sum of money. If the Responder accepts the offer, then the sum is split
accordingly between the two. Otherwise, if he or she decides to reject the offer, both receive nothing. The patients' strategic
behavior in both roles was compared with that of healthy and clinical controls. It was hypothesized that cognitive deficits
characterizing schizophrenia, together with difficulties in social judgment, would impair the patients' bargaining ability. We found
that in general schizophrenic patients did not fully exploit their strategic power as Proposers. In contrast, as Responders,
schizophrenic patients acted not significantly different from controls. Further investigation is needed to establish the links between
cognitive and symptomatic mediators and strategic decision-making ability.
© 2006 Elsevier Ireland Ltd. All rights reserved.

Keywords: Schizophrenia; Ultimatum Game; Bargaining task; Game theory; Cognitive deficits; Social cognition

1. Introduction Moreover, it requires ‘mind-reading’ (mentalizing) ability


and social cognition. The UG involves two players, the
In this work we have studied the strategic behavior of Proposer and the Responder, and is described by the
schizophrenic patients playing the Ultimatum Game following rules: The Proposer is given a sum of money
(UG). The UG is an interactive decision task that and has to offer the Responder part of it. The Responder
involves goal-directed behavior, using cognitive skills may either accept the offer or reject it. If he or she
such as working memory and executive function (i.e. chooses to accept the offer, the sum of money is divided
planning ahead while anticipating future consequences). between the two according to that offer. However, if he or
she rejects the offer, then both players receive nothing.
In playing the UG, certain cognitive abilities and
⁎ Corresponding author. Day Care Unit, “Shalvata” Mental Health
functions are employed by both players. To maximize his
Center, P.O. Box 94, Hod-HaSharon 45100, Israel. Tel.: +972 9
7478570, +972 50 590 7061 (Mobile); fax: +972 9 7478674.
or her payoff, the Proposer is supposed to use a
E-mail addresses: ziv.carmel@gmail.com, zivca@clalit.org.il mentalizing ability. The Responder, on the other hand,
(Z. Carmel). might face a conflict between ‘rational’ thinking (the
0165-1781/$ - see front matter © 2006 Elsevier Ireland Ltd. All rights reserved.
doi:10.1016/j.psychres.2006.03.026
40 N. Agay et al. / Psychiatry Research 157 (2008) 39–46

goal of maximizing his or her payoff) and emotional planning ahead. Daily life decision-making processes
arousal concerning social norms (e.g. a feeling of insult, should take into account other people's response to
the urge to punish for unfairness). Two distinct brain one's decisions. Therefore, whereas the majority of the
regions, the dorsolateral prefrontal cortex and the insula, literature examined decision-making abilities of schizo-
were found to be highly activated during the Respon- phrenic patients in non-strategic environments, our
der's decision under this conflict (Sanfey et al., 2003). study investigates how schizophrenic patients deal
Both these brain regions are considered impaired in with a strategic interaction.
schizophrenic patients. The hypothesis that people af-
fected by schizophrenia have impaired mentalizing 1.3. The Ultimatum Game
ability (Theory of Mind) has been discussed by Frith
and Corcoran (1996), but no definitive conclusions have The Ultimatum Game represents a “take it or leave it”
been reached. negotiation scene: one bargainer makes a final offer to
The main goal of our research was to study how the counterpart and walks away from the table, leaving
people affected by schizophrenia function in the UG, a the other to either sign the deal or not. Personal ex-
bargaining game that reflects aspects in daily life perience in negotiation might tell us that such a dramatic
functioning. attitude has a good chance of failing. However, in clas-
sical game theory, such an ultimatum should work.
1.2. Decision-making behavior and social cognition in Imagine the following situation: you receive a sum of
schizophrenia money and are being told to offer an anonymous person a
part of it. If this person accepts your offer (for example,
The degree to which schizophrenic patients show of one dollar out of the whole sum), then you end up with
intact functioning on decision-making tasks is still the whole sum minus one dollar, and the other person
unclear. Several studies using two different decision ends up with a dollar. However, the other person has
tasks — Bechara's gambling paradigm (also known as the right to reject your offer, in case it doesn't suit him or
the Iowa Gambling Task) and the two-choice prediction her: if that happens — both of you end up with no money
task— resulted in ambiguous conclusions (Bechara et at all.
al., 1994; Shurman et al., 2005; Hutton et al., 2002; In game theory, this situation is called an Ultimatum
Wider et al., 1998; Ludewig et al., 2003). Game. In this game there are two players: a Proposer (the
Beside cognitive deficits such as in working memory one who makes the offer and who has the advantage of the
and executive function, which are considered a core first-goer), and a Responder (who makes the decision
feature of schizophrenia (Sharma and Antonova, 2003), whether to accept the offer or reject it, and thus has veto
other deficits belong to the field of social cognition. It power). If we assume that each player wants to maximize
was hypothesized that difficulties in social interactions his or her profit in the game, it is clear that the Responder
in schizophrenia originate in a deficit in Theory of Mind should accept any offer, because any positive amount is
(ToM), that is, in incorrect interpretation of the better than zero. Therefore the Proposer, knowing this,
intentions and thoughts of others. Various studies were should offer the smallest amount possible. Thus, in the
aimed at finding a linkage between the symptomatology case of two ‘rational’ players playing for 20 New Israeli
of schizophrenia, cognitive deficits, and functioning Shekels (NIS) — approximately 5 U.S. dollars — the
level in ToM tasks (Corcoran et al., 1995; Stephenson et Proposer should offer 1 NIS, the Responder should accept
al., 1996; Pickup and Frith, 1996, 2001). the offer, and the game should end with payoffs (19, 1) —
The crucial difference between a typical task (a ToM that is, Proposer receiving 19 NIS, Responder receiving 1
task or a decision-making task such as the ones NIS. In fact, the Responder should accept even an offer of
mentioned above) and a game is that the former doesn't 0 NIS, because rejection will not negatively effect his or
take into account interactive considerations; none of the her payoff (either accepting or rejecting the offer, he or she
decision alternatives from which a subject chooses a will end up with 0); thus, another possible result of the
response influence the other subjects. However, in a game is (20, 0). Such a pair of payoffs in called the Nash
game such as the UG, each decision alternative has a Equilibrium of the game, and it means that this is how the
different effect upon both the player who makes the game should end if the players are both payoff
decision and his or her counterpart. maximizers.(Selten, 1975). However, this equilibrium
There is no doubt that a certain ‘mind-reading’ ability was rarely realized in any of the numerous experiments
is crucial in daily social exchange and social relations, that have been conducted throughout the world over the
no less than cognitive abilities such as memory and past 22 years (Guth et al., 1982; Guth and Tietz, 1990;
N. Agay et al. / Psychiatry Research 157 (2008) 39–46 41

Roth et al., 1991; McCabe et al., 2002). Instead, subjects with intact ToM. Therefore, we predicted no substantial
reach a less extreme, more reasonable division of the sum difference in rejection rates among the three groups.
of money at stake, even though the game is played
anonymously so that social considerations such as 2. Methods
reputation should have no influence. The average
Proposer offers 40% of the amount to the Responder. In 2.1. Subjects
average, 16% of the offers are rejected. Tiny offers are
almost always rejected (Oosterbeek et al., 2003). Forty-nine people with a DSM-IV diagnosis of
Aspects of social exchange in everyday life are schizophrenia participated in the study. Diagnosis was
represented in this simple game, for example, fairness based on clinical assessment made by two specialist
and punishing for unfairness (even at the price of psychiatrists.
lowering one's own profit), along with empathy (the All subjects were inpatients in the day care unit of
Proposer can try to predict the response by putting “Shalvata” Mental Health Center, in Hod-HaSharon,
himself or herself in the place of the Responder). In Israel. The patients were in various stages of rehabilita-
addition, playing this game more than once involves a tion, all attending either the day care ward or a
learning process, even if one's counterpart changes: for rehabilitation unit. None were fully hospitalized. Based
example, one learns which low offers are high enough to on clinical assessment, none of the patients were in an
be accepted, and which have a high probability of being acute psychotic stage of illness.
rejected. The experiment was approved by the local Helsinki
committee, and all participants gave their signed in-
1.4. Hypothesis formed consent. Subjects were further selected based on
functional measures: the patient's ability to cooperate,
As described above, people affected with schizo- and autonomously perform his or her part in the game.
phrenia tend to misinterpret the intentions and beliefs of Prior to participating in the game, every patient was
others. Hence, we hypothesized that as Proposers, these asked to perform a short preliminary task in order to assess
subjects would: organizational ability and basic arithmetic ability: subjects
were given a deck of cards, and were asked to form a
1) Not fully acknowledge their strategic power, i.e. the combination of cards that would create the number 11.
power to offer a little less than half the sum and thus After completing this task successfully, the participants
earn more than half. Realizing that such an offer has a proceeded to the next stage of the experiment.
good chance of being accepted demands a certain Two control groups were studied as well. A group of 52
mind-reading ability, which might be impaired in non-clinical controls was recruited from the community
schizophrenia. We therefore expected offers in the and university staff (age and gender matched). A second
schizophrenic patient group to be higher, closer to control group consisted of 19 depressive patients, all
half the sum, than those in the control groups. inpatients attending a day program at “Shalvata” Mental
2) Make some tiny offers, not taking into account the Health Center at the time of the experiment (Table 1).
high probability of rejection of these “insulting” or
“unfair” offers by the Responders. 2.2. Procedures
3) Make unreasonable hyper-fair offers (more than half
the sum), due to misjudgment of the situation. Patient sessions included 4, 6, or 8 participants, half of
them in the role of Proposers and the other half as Res-
In addition, we predicted perseveration along trials: ponders. Roles were determined randomly by the instruc-
after experiencing one round of the game, the offer level tor. Control sessions included 6, 8, or 18 participants.
would not change dramatically following “accept” Proposers sat in a row facing a row of Responders. All
responses; a Proposer in the schizophrenic group will of the participants in a session sat in the same room, so
not attempt to maximize his or her payoff by reducing that the experimental procedure would be transparent to
their offer after their last one was accepted. them. Each participant was assigned a code number, so
As for the Responder's role, we rely on the article that the session would be anonymous: the names of one's
Autism, theory-of-mind, cooperation and fairness (Hill and counterparts would not be revealed to him or her.
Sally, 2003). The authors of this unique study investigated The procedure of each “round” was as follows:
the behavior of people with autism in the UG. They The Proposer made an offer by filling in a form (see
conclude that the rejection rate is not necessarily correlated Appendix 1). The forms were then distributed randomly
42 N. Agay et al. / Psychiatry Research 157 (2008) 39–46

Table 1
Participants' demographic and clinical characteristics
Schizophrenic patients Depressive patients Non-clinical controls
N = 49 N = 19 N = 52
Mean S.D. Mean S.D. Mean S.D.
a
Age (years) 36.2 10.8 43.0 18.5 34.9 9.2
Education b 0.9 0.6 1.3 0.9 1.5 0.6
Mean age at onset of illness (years) c 19.4 4.9 27.0 18.0
Length of current admission (months) d 4.4 5.5 3.5 2.6
Number of previous admissions e 2.8 2.2 1.8 1.0
CGI score f 4.6 1.0 4.3 0.8
a
Significant (and typical) difference in age of schizophrenic vs. depressive groups (P = 0.03). No significant difference between schizophrenic
patients and non-clinical controls (P = 0.49).
b
Education level was assessed using the following scale: 0 — did not complete high school, 1 — completed high school, 2 — high education. The
difference between the groups is significant (P b 0.01).
c
No significant difference between the groups (P = 0.2).
d
No significant difference between the groups (P = 0.4).
e
Significant difference between the groups (P b 0.01).
f
Clinical Global Impression (Guy W., ECDEU Assessment Manual for Psychopharmacology. Rockville, MD: US Department of Health and
Human Services publication (ADM) 1976; pp. 218–22). No significant difference between the groups (P = 0.3).

among the Responders. In this way, every Responder behavior, we applied regression analysis with last (2nd)
received an offer from an anonymous Proposer. After the offer as the dependent variable, and the following
Responders filled in their decisions, each form was returned variables as predictors: 1st offer (O1), the response to it
to the Proposer to whom it belonged, so that each Proposer (R1), group, group • O1, O1 • R1.
could find out what the response to his or her offer was. A Pearson chi-square test was used to determine
Subjects were asked to keep silent during the session. whether the distribution of Proposer types varied with
At the beginning of the session, the subjects were group.
given an oral explanation of the rules of the game by the One- and two-way analyses of variance (ANOVAs)
instructor. Thereafter, a demonstration round was played were used to analyze differences in mean offer between
(with no real payoffs), followed by two “real” rounds the groups, with and without respect to gender.
(i.e. with payoffs) in a row. The sum of money for each A series of Pearson chi-square tests was used to
round was 20 NIS (approximately 5 U.S. dollars). examine whether the rejection rate varied with group
The subjects were told that after these two rounds, and round.
they would receive their payoffs according to one of the
rounds, which would be randomly chosen. (This was 3. Results
done due to budget limitations.) At the end of the
session each subject discreetly received an envelope 3.1. Offers
containing his or her payoff.
The UG can be played, and studied, either as a single- 3.1.1. Offers by levels
round or a multi-stage game. We have chosen to study a We divided offers into three categories, with respect
simple two-stage version (two pay rounds). The rationale to offer level: fair (10 NIS), unfair (less than 10 NIS),
for this choice was both our interest in the initial behavior and hyper-fair (more than 10 NIS). A significant
rather than the acquired one, and our desire for subjects difference between the groups concerning the final
to fully comprehend the game rules. This is why we offer was revealed. The distribution of final-round offers
address much importance to the last round of the game, by levels is presented in Fig. 1. While the distribution of
the second pay-round, in which we assume subjects to healthy subjects' offers was approximately even be-
have operated out of comprehension of the game. tween fair and unfair (none were hyper-fair), that of
schizophrenic subjects was significantly different
2.3. Data analysis (P = 0.016); about 50% of their offers were fair and the
rest were more or less evenly divided between unfair
A Pearson chi-square test was used in order to check and hyper-fair. Thus, for schizophrenic Proposers, the
whether offer distribution varied with group. To assess possibility of dividing the money evenly was as
order to assess the influence of experience on Proposers' reasonable as for healthy Proposers, whereas the option
N. Agay et al. / Psychiatry Research 157 (2008) 39–46 43

Offers by levels rejected, or lowered their 2nd offer after their 1st offer
60%
was accepted.
50% ‘Weak-strategic’ Proposers are those who persever-
40% ated, that is, their 2nd offer was the same as their 1st
30% offer.
20%
Finally, ‘non-strategic’ Proposers are those who
unreasonably reduced their offer after a rejection, or
10%
raised their offer after an acceptance.
0% We found that the distribution into types significantly
unfair (<10 NIS) fair (=10 NIS) hyperfair (>10 NIS)
varied with group.
schizophrenic (N=25) control (N=26)
As demonstrated in Fig. 3, the highest proportion of
Fig. 1. Distribution of offers by levels, final round. non-strategic Proposers is in the schizophrenic group
(P = 0.018). Non-strategic Proposers consist as much as
20% of the total in the schizophrenic group, while in the
of being hyper-fair appears to be as reasonable as being healthy group there are none.
unfair, in contrast to the pattern for healthy Proposers.
3.1.4. Mean offer
3.1.2. Offer fluctuation after acceptance/rejection No significant differences in mean offer were
Fig. 2 shows the influence of experience on Pro- revealed between the three groups. The mean offers in
posers' behavior, that is, how the 1st offer and the
counterpart's response to it influenced the level of the
2nd offer. It turned out that the nature of this influence a
varied with group (all P values b 0.035). 2nd offer after rejection of 1st offer
25
The adjustment of the 2nd offer after the 1st offer had
received a negative response is quite similar in both the
2nd offer (NIS)

20
schizophrenic and healthy control groups (Fig. 2a). Both
15
figured out that they should raise their 2nd offer after their
1st one was rejected. However, schizophrenic patients 10
were more generous and raised their offer to a slightly
5
higher level than controls. (As can be seen in Fig. 2a, the
line representing the schizophrenic group is slightly above 0
the line representing controls, when 1st offer is unfair.) 0 5 10 15 20
This similarity emphasizes the relative failure in strategic 1st offer (NIS)
control (N=26) schizophrenic (N=25)
thinking, as demonstrated in the way schizophrenic
reference slope (1st offer=2nd offer)
patients adjust their 2nd offer after their 1st offer had
received a positive response. While healthy controls, at- b
tempting to maximize their payoff, lower their 2nd offer 2nd offer after acceptance of 1st offer
after a positive response for their 1st offer, schizophrenic 25
patients do not do so. As can be seen in Fig. 2b, their 2nd 20
2nd offer (NIS)

offer seems independent of the response they had received


and is approximately constant (7.7 NIS). 15

10
3.1.3. Proposer types
5
In order to further examine Proposers' strategic think-
ing, we divided the entire Proposer population into types, 0
based on how their 2nd offer was affected by the response 0 5 10 15 20
to their 1st offer: Referring to the two pay-rounds (1st and 1st offer (NIS)
2nd), we define ‘strong-strategic’, ‘weak-strategic’ and control (N=26) schizophrenic (N=25)
reference slope (1st offer=2nd offer)
‘non-strategic’ types of Proposers as follows:
‘Strong-strategic’ Proposers are those who adjusted Fig. 2. a: A regression model for the 2nd offer, after receiving a
their 2nd offer according to the response to their 1st rejection of the 1st offer. b: A regression model for the 2nd offer, after
offer, that is, raised their 2nd offer after their 1st one was receiving an acceptance of the 1st offer.
44 N. Agay et al. / Psychiatry Research 157 (2008) 39–46

all groups were approximately 8.7 NIS with a standard Rejection Rates
deviation of about 3 NIS. 50.00%

40.00%
3.1.5. Mean offer by group and gender
Analysis referring to group and gender revealed a 30.00%
significant difference between the schizophrenic group
and the healthy control group; analysis of the first round 20.00%
of the game (demo round) revealed a link between group
10.00%
and gender (P = 0.029); that is, the difference between
men's and women's mean offer was found to be group 0.00%
dependent. In the schizophrenic group, the average offer demo round* 1st round** 2nd round
of men was significantly higher than that of women schizophrenic (N=24) healthy controls (N=26)
(10.4 vs. 7.1 NIS, respectively), with men's mean offer non-schiz. patients (N=10)
being slightly more than half the sum, whereas in the
healthy control group only a minor difference between Fig. 4. Rejection rates by group and round.
men's and women's offers was demonstrated (8.2 vs.
9.1 NIS, respectively). This phenomenon was even higher than that of healthy subjects (P = 0.026): the latter
more significant (P = 0.001) on the last offer (round 2) of rejected only 4% of the offers, while schizophrenic
the game: while schizophrenic men offered on average subjects and depressed subjects rejected 20% and 40% of
11.2 NIS, schizophrenic women offered only 6.7 NIS the offers, respectively. By the last round, no significant
on average. In the healthy control group, no such dif- difference was found in rejection rates between the
ferences were found; men's and women's mean offers different groups. Although the rejection rate among
being 7.7 and 8.5 NIS, respectively. schizophrenic subjects remained the highest (29%, vs.
Thus, the deviation from the standard offer level (the 19% of healthy and 20% of depressed patients), this
mean offer of men and women together, which was difference was not statistically significant.
around 8 NIS in all groups) is upwards for schizophrenic
men, and downwards for schizophrenic women. 4. Discussion

3.2. Responses In the present study, we aimed at examining the


strategic ability of schizophrenic patients, using the UG.
3.2.1. Rejection rates Based on previous findings of Sharma and Antonova
The rejection rates are presented in Fig. 4. (2003), we predicted that schizophrenic patients' cogni-
On the demo-round, the rejection rate in the tive deficits and difficulties in social interactions might
schizophrenic group was significantly lower than in make their strategic behavior less efficient (or merely
both control groups. (8% vs. 34% and 30% respectively, different) from that of controls.
P = 0.077). We have chosen to utilize a paradigm taken from
A reversed trend was demonstrated in the 1st round, classical game theory, the study of strategic interactions.
when the rejection rate of patients was significantly In a game, players (either opponents or partners) use
computational and social cognitive skills to select the
most profitable strategy, where profit can be money,
Proposer Types satisfaction, reputation, etc. Being a mathematical field
80%
of study, game theory quantifies each game into a matrix
70%
60%
of actions and payoffs, thus searching for optimal
50% strategies. By modeling an interaction between two
40% sides as a game, in the game-theoretic sense, we can
30% quantify aspects in the behavior of the people involved,
20% and examine their choices in the light of the optimal
10% strategies game theory gives us.
0%
non-strategic weak-strategic strong-strategic
The advantage of a task like the UG over traditional
schizophrenic (N=25) healthy controls (N=26) non-schiz.patients (N=9)
tasks used to quantify decision-making ability is that
this kind of game-oriented task can model daily life
Fig. 3. Type distribution by group. situations, such as negotiation/bargaining situations in
N. Agay et al. / Psychiatry Research 157 (2008) 39–46 45

which one decides whether or not to purchase a certain controls. The lack of strategic behavior is clearly seen in
item or where to do it, one manages a bank account, etc. the regression graph (Fig. 2b): there is no adaptation of
These situations demand a decision-making ability the offer level after receiving an ‘accept’ response for the
which involves both cognitive and emotional factors. previous offer. Thus, compared with healthy controls,
Existing laboratory decision-making tasks such as schizophrenic patients take less strategic advantage of
the Iowa gambling task and the two-choice prediction their role as Proposers.
task mentioned earlier can help to quantify decision- Another finding is that schizophrenic Proposers'
making characteristics involving working memory or behavior was gender-dependent, as opposed to healthy
executive control. However, the conclusions drawn controls'. Schizophrenic men were significantly more
from these experiments are somewhat limited since the generous in their offers than schizophrenic women, whose
nature of the tasks does not involve a few crucial aspects mean offer was lower than the mean offer level of all three
of decision-making in daily life. groups. Schizophrenic men actually offered slightly more
Whereas existing tasks are performed in a ‘sterile’ than half the sum to their counterpart. This finding may be
laboratory environment, isolating and measuring single of interest in light of the study of Sullivan and Allen
aspects of behavior, the UG task is interactive, user- (1999), in which gender differences among schizophrenic
friendly and simple to perform. It involves real people, not patients in their Machiavellian tendency were shown. The
merely a computer screen. The decisions that one has to term ‘Machiavellianism’ refers to one's tendency to act in
make in either role of the UG link cognitive abilities such a cold and manipulative manner, while reading one's
as executive function and working memory, together with counterpart's intentions in order to maximize one's
social judgment concerning the other players' view of payoff. The authors investigated the hypothesis that
reality, as well as one's own. This is exactly the kind of schizophrenic patients score significantly lower than
decision we constantly make in everyday life; therefore healthy controls on the MACH-3 test, a questionnaire
understanding how cognitive impairments affect social quantifying Machiavellian tendencies, initially developed
decision-making and strategic thinking is of great by Christie and Geis (1970). This turned out to be true for
importance. This kind of task can add to traditional schizophrenic men but not for schizophrenic women. Our
means of evaluating cognitive abilities another, more findings support Sullivan and Allen's hypothesis that
complex evaluation of a patient's daily functioning. schizophrenic men, but not women, are relatively low-
In this study we found substantial differences Machs. Whether and how cognitive deficits relate to high/
between schizophrenic and non-schizophrenic subjects low Mach tendencies is yet to be studied.
as Proposers. Schizophrenic subjects did not fully Unlike Proposers' behavior, in which we found
exploit their advantage as first-goers in the game. In substantial differences between the schizophrenic
contrast to healthy controls who, after an ‘accept’ patients group, depressed patients group, and the healthy
response, figured out they can now reduce their offer control group, Responders' behavior converged during
in a reasonable way and still get an ‘accept’ response, the rounds to a similar behavior on the final round. This
thus increasing their payoff, schizophrenic patients did finding resembles those of Hill and Sally (2003), who
not fully attempt to make the best out of the situation. performed an UG experiment with autistic participants.
Misjudgment of the bargaining situation is clearly seen In the present framework, schizophrenic patients
in the schizophrenic patients' distribution of offers by seemed to deal with the cognition-emotion conflict des-
levels — fair, unfair, hyper-fair — which differs from cribed in the fMRI study of Sanfey et al. (2003) in a
that of healthy controls. While not even a single hyper- manner similar to that of healthy controls. However, it is
fair offer, and equal rates of fair and unfair offers, were important to note that the low proportion of rejections
made by the healthy control Proposers, schizophrenic throughout the whole experiment makes this conclusion
Proposers made a considerable amount of hyper-fair questionable. Further research is needed to verify our
offers, the same rate of fair offers as controls, and much finding that rejection rates are the same among schizo-
fewer unfair offers compared with controls. phrenic and non-schizophrenic subjects. A possible way to
While both schizophrenic and controls acted quite the increase the percentage of rejections is to control the offer-
same after receiving a rejection, increasing their level in an artificial way, hence producing lower, more
subsequent offer, a difference in the behavior after ‘insulting’ offers that have a high chance of being rejected.
acceptance was prominent. The percentage of ‘non- Since the study group consisted of inpatients, we
strategic’ Proposers, as we defined those who raised their included a control group of non-schizophrenic inpatients,
subsequent offer after an ‘accept’ response, is signifi- in addition to the healthy control group. The addition of
cantly higher among schizophrenic subjects than in this second control group was aimed at neutralizing the
46 N. Agay et al. / Psychiatry Research 157 (2008) 39–46

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from the other (in distribution into Proposer types).Thus Ludewig, K., Paulus, M.P., Vollenweider, F.X., 2003. Behavioral
we believe that the hospitalization factor has been dysregulation of decision-making in deficit but not nondeficit
neutralized to a satisfactory degree, and there is a high schizophrenia patients. Psychiatry Research 119, 293–306.
probability that the behavior of schizophrenic subjects is McCabe, K., Rigdon, M., Smith, V., 2002. Mind, cooperation and
illness specific and not merely a consequence of their state social exchange in two person extensive form games.http://www.
gwu.edu/~industry/workshop/vernonsmith.doc.
of being hospitalized. Oosterbeek, H., Sloof, R., Van de Kuilen, G., 2003. Cultural differences
To our knowledge, this preliminary work is the first in Ultimatum Game experiments: evidence from a meta-analysis.
exploratory study of its kind. Albeit its limitations, Experimental Economics 7, 171–188.
significant differences between schizophrenic and con- Pickup, G.J., Frith, C.D., 1996. ‘Theory of mind’ and executive
trol subjects playing the UG were demonstrated. Further function in schizophrenia. Schizophrenia Research 18, 203–206.
Pickup, G.J., Frith, C.D., 2001. Theory of mind impairments in
research is needed in order to better understand these schizophrenia: symptomatology, severity and specificity. Psycho-
findings, particularly comparing symptom-specific logical Medicine 31 (2), 207–220.
groups and using measures of cognitive deficits. Roth, A.E., Prasnikar, V., Okuno-Fujiwara, M., Zamir, S., 1991.
Hopefully, a better understanding of these aspects will Bargaining and market behavior in Jerusalem, Ljubljana, Pitts-
enable the development of future tools for assessing burgh, and Tokyo: an experimental study. American Economic
Review 81 (5), 1068–1095.
schizophrenic patients' decision-making abilities, thus Sanfey, A., Rilling, J., Aronson, J., Nystrom, L., Cohen, J., 2003. The
helping to develop novel treatment strategies for gaining neural basis of economic decision-making in the Ultimatum Game.
successful self-maintenance of their daily life. Science 300, 1755–1758.
Selten, R., 1975. Reexamination of the perfectness concept for
equilibrium points in extensive games. International Journal of
Appendix 1
Game Theory 4, 25–55.
Sharma, T., Antonova, L., 2003. Cognitive function in schizophrenia:
Round number_____ deficits, functional consequences, and future treatment. Psychiatric
Proposal form Clinics of North America 26 (1), 25–40.
(1) Player 1 's code number_____________________ Shurman, B., Horan, W.P., Nuechterlein, K.H., 2005. Schizophrenia
(2) Player 2 's code number____________________ patients demonstrate a distinctive pattern of decision-making
impairment on the Iowa Gambling Task. Schizophrenia Research
(3) The sum which has to be divided_____20 NIS____ 72 (2–3), 215–224.
(4) Player 2 will receive_______________________ Stephenson, D., Hellewell, J.S.E., Corcoran, R., Frith, C.D., Deakin,
(5) Player 1 will receive (3)–(4)________________ J.F.W., 1996. Theory of mind and other cognitive deficits in
(6) I Accept____________________I Reject______ schizophrenia. Schizophrenia Research 18 (2–3), 206.
Sullivan, R.J., Allen, J.S., 1999. Social deficits associated with schizo-
phrenia defined in terms of interpersonal Machiavellianism. Acta
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