Game Theory Tells Us That in the Ultimatum Game

question 50

Multiple Choice

Game theory tells us that in the ultimatum game

• A) The threat to reject is credible
• B) The threat to reject in not credible
• C) People are expected to give more under a threat of rejection
• D) A and C

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Definitions:

Relevance

A characteristic of financial information that is capable of making a difference in the decisions made by users.

Decision Usefulness

The quality of financial information that helps users make informed decisions regarding investment, credit, and similar activities.

General Objective

The overarching, broad goal that guides decision making and strategy within an organization or project.

Derived External User Objective

A goal or requirement for financial information that is created based on the needs of external users of financial statements.