Ruby uses pass-by-value, or more precisely, a special case of pass-by-value where the value being passed is always a pointer. This special case is also sometimes known as call-by-sharing, call-by-object-sharing or call-by-object.
It's the same convention that is used by Java (for objects), C# (by default for reference types), Smalltalk, Python, ECMAScript/JavaScript and more or less every object-oriented language ever created.
Note: on all existing Ruby implementations Symbols, Fixnums and Floats are actually passed directly by value and not with an intermediary pointer. However, since those three are immutable, there is no observable behavioral difference between pass-by-value and call-by-object-sharing in this case, so you can greatly simplify your mental model by simply treating everything as call-by-object-sharing. Just interpret these three special cases as internal compiler optimizations that you don't need to worry about.
Here's a simple example you can run to determine the argument passing convention of Ruby (or any other language, after you translate it):
def is_ruby_pass_by_value?(foo)
foo.replace('More precisely, it is call-by-object-sharing!')
foo = 'No, Ruby is pass-by-reference.'
return nil
end
bar = 'Yes, of course, Ruby *is* pass-by-value!'
is_ruby_pass_by_value?(bar)
p bar
# 'More precisely, it is call-by-object-sharing!'
