Results of the ultimatum game suggests that:
A)considerations of fairness may play a role in economic behaviour
B)considerations of fairness play no role in economic behaviour
C)economists should abandon assumptions of individual self-interest in their models
D)none of the above

Question

Quizplus · Accepted Answer

The ultimatum game is a well-known experimental paradigm in economics that suggests that considerations of fairness may play a role in economic behavior. In this game, one player (the proposer) is given a sum of money and must offer a portion of it to another player (the responder). The responder can either accept the offer or reject it; if rejected, neither player receives any money. The results of the game show that proposers tend to offer a fair share of the money, and responders tend to reject unfair offers even if it means receiving nothing. This indicates that considerations of fairness have an impact on economic behavior, contrary to the assumption of pure self-interest often made in economic models.

Results of the Ultimatum Game Suggests That