Experiments show that when real people play the ultimatum game, starting with $100,
A)Player A usually proposes giving Player B more than $50.
B)Player B usually accepts Player A's proposal if Player A proposes giving Player B $30 or $40.
C)players show themselves to be rational wealth-maximizers.
D)Player B will usually demand an even split.

Question

Quizplus · Accepted Answer

In the ultimatum game, Player B often accepts offers that are less than an even split, such as $30 or $40, because rejecting the offer means getting nothing. However, offers perceived as too low are often rejected due to fairness considerations.

Experiments Show That When Real People Play the Ultimatum Game