In an ultimatum game
A)non-profit-maximizing behavior often occurs.
B)players move simultaneously.
C)players act in an economically rational way.
D)one player receives nothing.

Question

Quizplus · Accepted Answer

In an ultimatum game, one player (the proposer) proposes a way to divide a sum of money with another player (the responder). If the responder accepts, the money is divided according to the proposal. If the responder rejects, neither player receives anything. Studies have shown that people often do not act in economically rational ways (i.e., maximizing profit) in such games, as proposers tend to offer fair splits and responders often reject offers they perceive as unfair, even at a cost to themselves.

In an Ultimatum Game