Cilus and Shane Are Playing an Ultimatum Game Where Cilus

question 68

Essay

Cilus and Shane are playing an ultimatum game where Cilus is given $50 and asked to propose a way of splitting it with Shane.When Shane learns Cilus's proposal,Shane chooses whether to accept or reject the split.If Shane accepts the split,both players receive the money according to Cilus's split proposal.If Shane rejects the split,both players receive nothing.This game will be played only once,so Cilus does not have to worry about reciprocity when making his choice.Assume that split proposals can be made only in increments of $1.
According to traditional economic theory,which presumes both players are fully rational and wish to maximize their incomes,what is the outcome of the game? Why is this outcome not observed very often in experimental settings?

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Definitions:

Cavitiy

A hollow space within the body or one of its organs; however, the correct spelling is "cavity."

Skull

The bone structure that forms the head, protecting the brain and supporting the structures of the face.

Intramembranous Ossification

Intramembranous ossification is a process of bone development in which bone tissue is directly formed from mesenchymal tissue without first being cartilage.

Endochondral Ossification

A biological process by which bone tissue is formed from cartilage, notably in the formation and growth of long bones.