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Economics Letters Volume 244, November 2024 Abstract We study human behavior in ultimatum game when interacting with either human or algorithmic opponents. We examine how the type of the AI algorithm (mimicking human behavior, optimising gains, or providing no explanation) and the presence of a human beneficiary affect sending and accepting behaviors. Our experimental data reveal 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Letters Volume 244, November 2024 Abstract We study human behavior in ultimatum game when interacting with either human or algorithmic opponents. 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