In the ultimatum game, two strangers are given $50 and must decide how to split the money between them. One player, called the proposer, makes the initial decision on how to split the money. The second player, called the responder, either accepts or rejects the proposer's offer. If the responder accepts the offer, both players are paid according to the proposer's offer. If the responder rejects the offer, neither player receives any money. Suppose the proposer acts in an altruistic manner. The proposer would offer ____ to the responder and the responder would ____ the offer.
A) $1; accept
B) more than $1; accept
C) more than $1; reject
D) $1; reject

Question

Quizplus · Accepted Answer

If the proposer acts in an altruistic manner, they would offer more than the minimum amount to the responder, reflecting a desire to be fair or generous rather than just ensuring acceptance of the offer. The responder, recognizing the fairness or generosity of the offer, would be likely to accept it.

In the Ultimatum Game, Two Strangers Are Given $50 and Must