Suppose Gina and Henry Play Two Rounds of the Ultimatum

Multiple Choice

Suppose Gina and Henry play two rounds of the ultimatum game. In the first round they play for $10; in the second round they play for $1,000. In the first round Gina suggests an 80/20 split ($8 to Gina, $2 to Henry) , but Henry quickly rejects the offer as unfair. If in the second round Gina offers the same split ($800 to Gina, $200 to Henry) , research by behavioral economists suggests that Henry will

A) accept the offer because the dollar amount he would forgo by rejecting is substantial.
B) counteroffer with a more even split.
C) weigh the offer much more carefully because of the dollar amounts involved but ultimately reject the offer.
D) exhibit a stronger negative reaction than the first time and ultimately reject the offer.