Scenario: the Ultimatum Game Is a Two-Player Game Played as Follows

question 184

Multiple Choice

Scenario: The ultimatum game is a two-player game played as follows. One player, the proposer, is told to divide a sum of money between the two players. The proposer proposes how to divide the sum. The other player, the responder, then chooses to either accept or reject the proposal. If the responder accepts the proposal, the money is split according to the proposal. If the responder rejects the proposal, neither receives any money. When this game is played by real people from a common social group, it is frequently observed that the proposer offers close to 50-50 split and the responder rejects offers below 30 percent of the sum.
-Refer to the scenario above.According to the theory you learned in the textbook,if the proposer offered 50 percent,should the responder accept?

• A) Yes, because, if the responder rejected the offer, he will end up with nothing.
• B) Yes, because 50 percent is the maximum the proposer will ever offer.
• C) No, because, if the responder rejected the offer, he will get more.
• D) No, because, 50 percent is the minimum the responder can expect from the proposer.

---

Definitions:

Emotional Response

The psychological reaction to a stimulus, characterized by feelings such as happiness, anger, fear, or sadness.

Hans Selye

A pioneering Hungarian-Canadian endocrinologist known for his research on the stress response and for introducing the concept of "General Adaptation Syndrome".

Physiological Arousal

A state of physical alertness or excitement, which can be triggered by emotions, thoughts, or external stimuli, affecting bodily functions.

Fight-or-flight Response

A physiological reaction that occurs in response to a perceived harmful event, attack, or threat to survival.