Cilus and Roseanne Are Playing an Ultimatum Game Where Cilus

question 103

Essay

Cilus and Roseanne are playing an ultimatum game where Cilus is given $50 and asked to propose a way of splitting it with Roseanne.When Roseanne learns Cilus's proposal,she chooses whether to accept or reject the split.If Roseanne accepts the split,both players receive the money according to Cilus's split proposal.If Roseanne rejects the split,both players receive nothing.This game will be played only once,so Cilus does not have to worry about reciprocity when making his choice.Assume that split proposals can be made only in increments of $1.
According to traditional economic theory,which presumes that both players are fully rational and wish to maximize their incomes,what is the outcome of the game? Why is this outcome not observed very often in experimental settings?

---

Definitions:

Maternity

The period during pregnancy and shortly after childbirth.

Child Support

Financial contributions legally required to be made by a non-custodial parent, aimed at supporting the wellbeing and expenses of their children.

Industrialization

The transformation from an agricultural-based society to one based on the manufacturing of goods and services.

Gender Roles

Social and behavioral norms considered appropriate for individuals of a specific sex within a given culture or society, often guiding personal interactions and choices.