Consider the Same Ultimatum Game as in the Previous Question

question 12

Multiple Choice

Consider the same ultimatum game as in the previous question but consider some new preferences reflecting a desire for fairness. In particular,now assume players get 1 util per dollar earned but lose 1/4 util for the absolute difference between their monetary payoffs. Which of the following is an offer that arises in a subgame-perfect equilibrium with these new preferences?

• A)1.
• B)2.
• C)4.
• D)5.

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Definitions:

Purchase Intent

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Call to Action (CTA)

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Facebook Ad

A form of online advertising that allows businesses and individuals to promote their products or services on the Facebook platform.

Comment Section

A designated area on websites or platforms where users can post comments to engage in a discussion related to the content presented.