Consider the Following Decision Tree and Information When Answering the Following

question 26

Multiple Choice

Consider the following decision tree and information when answering the following questions:
The decision tree depicts two players (Jane and Aaron) playing an ultimatum game where Aaron is given $1,000 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.
There are four sets of payoffs at the terminal nodes of the decision tree.In each node,the dollar amount to the left of the comma represents Aaron's payoff,and the dollar amount to the right of the comma represents Jane's payoff.

-Assume that Aaron and Jane are two experimental subjects who follow bounded rationality.If Aaron chooses to make an unfair proposal,the likely outcome of the game will be that Jane will ________ and Aaron will receive a payoff of ________.

• A) accept; $999
• B) accept; $1
• C) accept; $0
• D) reject; $500
• E) reject; $0

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Definitions:

Compare and Contrast

A critical thinking approach that involves identifying the similarities and differences between two or more subjects.

Performance Aids

Tools or resources used to support an individual's performance on the job, often providing quick access to necessary information or guidance.

Employees Perform

The execution of tasks and duties by workers as part of their job role within an organization.

Apprenticeship Programs

Formal programs combining workplace training and classroom learning to equip individuals with practical and theoretical skills in a trade or profession.