If you are assigned the role of Player A in the Ultimatum game and you propose that player B gets $1 and you get $99
A)you are behaving as a rational wealth-maximizer and player B is likely to accept your offer.
B)you are behaving as a rational wealth-maximizer and player B is likely to reject your offer.
C)you are not behaving as a rational wealth-maximizer and player B is likely to accept your offer.
D)you are not behaving as a rational wealth-maximizer and player B is likely to reject your offer.

Question

Quizplus · Accepted Answer

Player A is proposing a very unequal split of the money ($1 for B, $99 for themselves). While this is rational for maximizing their own wealth, it is unlikely that Player B will accept such an unfair offer. Player B may reject the offer out of a sense of fairness or to punish Player A for offering such an unfair split. Thus, while Player A may be rational in proposing this split, it is not likely to be successful in the game.

If You Are Assigned the Role of Player a in the Ultimatum