Scenario I The Following Scenario Describes Research Findings Discussed in the Following

question 5

Multiple Choice

Scenario I
The following scenario describes research findings discussed in the following review article:
Cameron, C. C. & Thaler, R. H. (1995) . Anomalies: Ultimatums, dictators, and manners. Journal of Economic Perspectives, 9(19) , 209-219.
In the ultimatum game, two participants are assigned to be either the "Divider" or the "Decider" by a coin flip. The Divider is given a sum of money, such as $10, and is instructed to offer some non-zero portion of it to the Decider. If the Decider accepts, she gets to keep what was offered and the Divider keeps the rest. If the Decider rejects the deal, both players get nothing. Both players are made aware of all of these rules and then the game begins. Under these conditions, Dividers usually offer a little less than $5 and Deciders usually accept this amount. If Dividers offer less, Deciders often reject and both players get nothing. A similar game is termed the dictator game. Players are randomly assigned to be either the "Allocator" or the "Receiver." The Allocator is given a sum of money and makes a decision about how much money she would like to give the Receiver, who must accept this result. Allocators in this game usually offer some money to the Receiver, but typically less than the Dividers in the ultimatum game.
-(Scenario I) Which research finding suggests that participants are more concerned with appearing fair than being fair?

• A)Dividers offer about 50 percent of the pot to the Decider even when the pot size is substantially increased.
• B)Dividers usually increase their next offer if the previous offer was rejected.
• C)Dividers offer more money than Allocators.
• D)Allocators offer money to Receivers when it is not required.

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Definitions:

Integrative Negotiation

A negotiation strategy focused on creating mutually beneficial agreements by addressing the underlying interests of all parties.

Firm Flexibility

The capacity of a company to adapt quickly and effectively to changing conditions or demands.

Integrative Negotiation

A negotiation strategy where parties collaborate to find a "win-win" solution to their dispute.

Distributive Assumptions

Beliefs or assumptions regarding the distribution of outcomes or resources in conflict or negotiation, typically focusing on a zero-sum perspective.