Bill and Bev Are Playing the Ultimatum Game, Starting with $50

question 457

Multiple Choice

Bill and Bev are playing the ultimatum game, starting with $50. A coin flip results in Bev being the one to propose a division of the $50. If Bev acts as economic theory assumes, she should propose that

• A)she gets $30 and Bill gets $20.
• B)she gets $25 and Bill gets $25.
• C)she gets $24 and Bill gets $26.
• D)she gets $49 and Bill gets $1.

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Definitions:

Low Return Rate

Refers to the proportion of goods returned to the seller being relatively small compared to the quantity sold, often seen in retail and e-commerce sectors.

Generalizable

The extent to which findings from a study can be applied or extended to broader populations or settings beyond the original research context.

Prevent Bias

Strategies or practices aimed at identifying and eliminating personal, cultural, and structural prejudices that can affect decision-making and outcomes.

Larger Sample

Refers to a more substantial portion or quantity of items or individuals selected from a population, used in research to increase the representativeness and accuracy of results.