In the ultimatum game, if neither the allocator nor the recipient cared about fairness, what is an optimal distribution of money? A. 100 percent for the allocator and 0 percent for the recipient. B. 99 percent for the allocator and 1 percent for the recipient. C. 0 percent for the allocator and 100 percent for the recipient. D. 1 percent for the allocator and 99 percent for the recipient.
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Dave K.
You play the following bargaining game. Player $A$ moves first and makes Player $B$ an offer for the division of $\$ 100$. (For example, Player $A$ could suggest that she take $\$ 60$ and Player $B$ take $\$ 40 .$ ) Player $B$ can accept or reject the offer. If he rejects it, the amount of money available drops to $\$ 90,$ and he then makes an offer for the division of this amount. If Player $A$ rejects this offer, the amount of money drops to $\$ 80$ and Player $A$ makes an offer for its division. If Player $B$ rejects this offer, the amount of money drops to 0 Both players are rational, fully informed, and want to maximize their payoffs. Which player will do best in this game?
Oluwadamilola A.
Many proposers in the ultimatum game offer half to the responder with whom they are paired. This behavior could be motivated by (select as many as might apply): a. Fear that an unequal split might be rejected by a fair-minded responder. b. A desire to induce the responder to reject the offer. c. A strong sense of fairness on the part of the proposers. d. Unrestrained greed on the part of the proposers.
Prashant B.
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