Consider a Version of the Ultimatum Game in Which Player

question 9

Multiple Choice

Consider a version of the ultimatum game in which player 1 makes an integer offer {1,2 …,9} to player 2.If player 2 accepts,he or she gets that amount of money and 1 gets to keep the remainder of $10.If 2 rejects,both get nothing.Which of the following is an offer that arises in a subgame-perfect equilibrium assuming players only care about monetary payoffs?

• A) 1.
• B) 2.
• C) 4.
• D) 5.

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Definitions:

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