In an Ultimatum Bargaining Situation,one Party Makes a Single and Final

question 1

Multiple Choice

In an ultimatum bargaining situation,one party makes a single and final offer - an ultimatum - to another party.If the offer is refused,then neither party gets anything.According to economists,what is the ideal demand to make in an ultimatum game,in which you can make a single offer that would divide $100 between yourself and another player?

• A)$99.99 (self); $.01 (other)
• B)$50 (self); $50 (other)
• C)$51 (self); $49 (other)
• D)$100 (self): $0 (other)

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Definitions:

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