Consider the Accompanying Decision Tree and Information to Answer the Questions

question 7

Multiple Choice

Consider the accompanying decision tree and information to answer the questions that follow.
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.

-What is the likely outcome of the game if Aaron chooses to make a fair proposal?

• A) Jane will reject and Aaron will receive a payoff of $999.
• B) Jane will reject and Aaron will receive a payoff of $500.
• C) Jane will accept and Aaron will receive a payoff of $500.
• D) Jane will reject and Aaron will receive a payoff of $1.
• E) Jane will reject and Aaron will receive a payoff of $0.

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Definitions:

Progesterone Levels

The concentration of progesterone, a hormone important for the regulation of menstruation and pregnancy, in the bloodstream.

Type D Personality

A personality trait marked by significant negative emotions and a tendency towards avoiding social interactions.

Anxious

A feeling of worry, nervousness, or unease about something with an uncertain outcome.

Hostile

Exhibiting or feeling aggression and antagonism towards others.