Conventional Economic Theory Suggests That in the Ultimatum Game, the Player

question 158

Multiple Choice

Conventional economic theory suggests that in the ultimatum game, the player proposing a split of $50 will propose that she get $49 and that the other player get $1. By the same reasoning, if the amount to be split is $1000, the player proposing the split will propose that she gets

• A)$500 and that the other player gets $500.
• B)$998 and that the other player gets $2.
• C)$999 and that the other player gets $1.
• D)$1000 and that the other player gets nothing.

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Definitions:

Cash Flow

The total amount of money being transferred into and out of a business, affecting its liquidity.

Consent Ability

The capability of an individual to understand and agree to the terms of services or treatment, acknowledging the implications and consequences.

Minor Child

An individual under the age of majority, as legally defined, not considered legally competent to make certain decisions.