In the ultimatum game in which player A divides a sum of money and then player B accepts or rejects the division,when the proposed distribution greatly favours player A,player B
A) accepts it all of the time.
B) accepts it most of the time.
C) accepts it half of the time.
D) rarely rejects it.
E) almost always rejects it.

Question

Quizplus · Accepted Answer

When the proposed distribution greatly favours player A, player B almost always rejects it as they perceive it to be unfair. This is known as the fairness norm or the social exchange theory. Player B would rather receive nothing than accept an unfair offer, as it can serve as a punishment to player A for being too greedy or unfair. Thus, the best choice is E, almost always rejects it.

In the Ultimatum Game in Which Player a Divides a Sum