When does the second player in an ultimatum game reject the offer made by the first player?
What will be an ideal response?
In an ultimatum game, the first player or the proposer is asked to offer a percentage of money to the second player or responder. The responder can accept or reject the offer. If he accepts the offer, the money will get split in the decided proportion, but if the responder rejects the offer, neither of them will get anything. The proposer usually makes the lowest possible offer to the responder, thinking that the responder will accept the offer because some money is better than no money. However, if the responder values fairness to money, he will reject the proposer's offer, asking for an equal share.
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In both monopolistically competitive and perfectly competitive industries
A) firms produce products for which there are no close substitutes. B) firms are price takers. C) there are high barriers to entry. D) there are many buyers and sellers.
If ________ equilibrium output ________, the price level decreases.
A. actual; exceeds potential aggregate output B. potential; is below actual aggregate output C. potential; is equal to actual aggregate output D. actual; is below potential aggregate output