Consider the Same Ultimatum Game as in the Previous Questions

question 23

Multiple Choice

Consider the same ultimatum game as in the previous questions but consider yet new preferences reflecting envy. In particular,now assume players get 1 util per dollar earned. That is all for the player who earns at least as much as the other. The player who earns strictly less than the other loses 1 util for each dollar difference. Which of the following is an offer that arises in a subgame-perfect equilibrium with these preferences?

• A)1.
• B)2.
• C)4.
• D)5.

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Definitions:

Equilibrium

A state of balance or stability within a system, where competing forces or influences are equal and no changes occur without external influence.

Organizational Resistance

The opposition or pushback by members within an organization against changes or new initiatives.

Interorganizational Agreements

Interorganizational agreements are formal contracts or partnerships between different entities to pursue shared objectives or projects.

Organization Design

The process of structuring an organization's roles, responsibilities, and systems to achieve its goals and strategy efficiently.