Multiple Choice
Scenario: The ultimatum game is a two-player game played as follows. One player, the proposer, is told to divide a sum of money between the two players. The proposer proposes how to divide the sum. The other player, the responder, then chooses to either accept or reject the proposal. If the responder accepts the proposal, the money is split according to the proposal. If the responder rejects the proposal, neither receives any money. When this game is played by real people from a common social group, it is frequently observed that the proposer offers close to 50-50 split and the responder rejects offers below 30 percent of the sum.
-Refer to the scenario above.According to the theory presented in the textbook,if the proposer offered 0 percent,should the responder accept?
A) He can either accept it or reject it, because he will end up with nothing anyway.
B) Yes, because 0 percent is the maximum the proposer can ever offer.
C) No, because, if the responder rejected the offer, he will get more.
D) No, because, 0 percent is the minimum the responder can expect from the proposer.
Correct Answer:

Verified
Correct Answer:
Verified
Q96: Scenario: The payoff matrix given below shows
Q97: Scenario: Two factories dump their waste in
Q98: How does a dominant strategy equilibrium occur
Q99: Why do some people tip generously at
Q100: Which of the following is likely to
Q102: Scenario: Beth and Charles are playing a
Q103: The following figure depicts four simultaneous-move games.
Q104: Which of the following is true?<br>A) A
Q105: Consider another version of the advertising game
Q106: Scenario: Beth and Charles are playing a