Consider the Following Decision Tree and Information When Answering the Following

question 126

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.

-If Aaron were to offer an unfair proposal,experimental results show that Jane would likely punish him by making herself ________ off by ________ and rejecting his offer.

• A) worse; $1
• B) better; $1
• C) worse; $999
• D) worse; $500
• E) worse; $1,000

---

Definitions:

Team Meetings

Gatherings of team members aimed at discussing progress, resolving issues, or planning strategies, crucial for communication and coordination within a group.

Two Bosses

A work situation where an employee reports to two different managers or supervisors simultaneously.

Matrix Structure

An organizational structure that combines two or more types of structures, typically functional and product-based.

Problem Solving

The process of identifying a problem, developing possible solution paths, and taking appropriate actions to resolve the problem.