Consider the Same Ultimatum Game as in the Previous Question

question 12

Multiple Choice

Consider the same ultimatum game as in the previous question but consider some new preferences reflecting a desire for fairness. In particular,now assume players get 1 util per dollar earned but lose 1/4 util for the absolute difference between their monetary payoffs. Which of the following is an offer that arises in a subgame-perfect equilibrium with these new preferences?

• A)1.
• B)2.
• C)4.
• D)5.

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Definitions:

Judicial Opinion

A formal statement by a court or a judge explaining the reasoning behind a decision made in a case.

Slip Opinion

A judicial opinion published shortly after the decision is made and not yet included in a case reporter or advance sheets.

Case Reporter

A publication that compiles judicial decisions from courts, providing references for legal precedent and interpretation.

Parallel Citations

References provided for a legal case that appear in more than one reporting system, offering multiple sources for locating the case documentation.