Two Players (Jane and Aaron)are Playing an Ultimatum Game Where

question 45

Essay

Two players (Jane and Aaron)are playing an ultimatum game where Aaron is given $7,000 and asked to propose a way of splitting it with Jane.When Jane learns Aaron's proposal,Jane chooses whether to accept or reject the split.If Jane accepts the split,both players receive the money according to Aaron's split proposal.If Jane rejects the split,both players receive nothing.This game will be played only once,so Aaron does not have to worry about reciprocity when making his choice.
Aaron is deciding whether to offer a fair or an unfair proposal.The fair proposal is a 50/50 split of the $7,000,and an unfair split is a split such that Aaron receives $6,999 and Jane receives $1.Draw the decision tree for this game.Make sure to label the decision node correctly.

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Definitions:

Utilities Payable

A liability account recording amounts owed for utilities such as electricity, water, and gas that have been consumed but not yet paid for.

Utilities Expense

Costs associated with the consumption of utilities such as electricity, gas, water, and sewer services by a business or household.

Supplies

Supplies refer to the materials and items that are used in the daily operations of a business, office, or institution, often consumable and requiring regular replenishment.

Adjusted Trial Balance

A list of all accounts and their balances after adjusting entries have been made, used to check the equality of debits and credits and prepare financial statements.