In the Ultimatum Game

question 51

Multiple Choice

In the ultimatum game:

• A) is a multi-stage game where one player (the proposal) offers to give the second player (the recipient) some share of a fixed prize; the recipient then decides whether to accept or reject the proposal.
• B) is a single-stage game where one player (the proposal) offers to give the second player (the recipient) some share of a fixed prize; the recipient then decides whether to accept or reject the proposal.
• C) is a multi-stage game where one player (the proposal) divides a fixed prize between himself and another player (the recipient) who is an passive participant.
• D) is a single-stage game where one player (the proposal) divides a fixed prize between himself and another player (the recipient) who is an passive participant.

---

Definitions:

Alteration

An unauthorized change to an instrument that modifies the obligation of a party to the instrument.

Promissory Note

A written promise to pay a specified sum of money to a certain individual or entity at a specified time or on demand.

Fictitious-Payee Rule

A principle in commercial law that a bank is not liable for fraudulent endorsement payments if the drawer intended the payee to be fictitious.

Refund

The process of returning funds to a purchaser in response to a product return, cancellation, or dissatisfaction with services provided.