Two Players (Kendell and Tatsuya)are Playing an Ultimatum Game Where

question 166

Essay

Two players (Kendell and Tatsuya)are playing an ultimatum game where Tatsuya is given $7,000 and asked to propose a way of splitting it with Kendell.When Kendell learns Tatsuya's proposal,Kendell chooses whether to accept or reject the split.If Kendell accepts the split,both players receive the money according to Tatsuya's split proposal.If Kendell rejects the split,both players receive nothing.This game will be played only once,so Tatsuya does not have to worry about reciprocity when making his choice.
Tatsuya is deciding whether to offer a fair or an unfair proposal.The fair proposal is a 50/50 split of the $7,000 and an unfair split is a split such that Tatsuya receives $6,999 and Kendell receives $1.Draw the decision tree for this game.Make sure to label the decision node correctly.

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Definitions:

Astroturfing

The practice of creating a false sense of grassroots support or opposition, often by hiding the true sponsors of a message or organization.

Spoofing

A malicious activity involving the falsification of communication from a source other than the actual source to deceive or manipulate.

Phishing

A fraudulent attempt, usually through email, to steal personal information by pretending to be a legitimate entity.