Which of the following statements about the Ultimatum Game is true?
A) It contains two players, an investor and a trustee.
B) It contains two players, a proposer and a responder.
C) It can only be played as a single round game (i.e. no chance of reciprocity)
D) The Nash Equilibrium is to offer half of the initial money.

Question

Quizplus · Accepted Answer

The Ultimatum Game contains two players, a proposer and a responder. The proposer offers a division of a sum of money and the responder can either accept or reject the offer. If the offer is accepted, the money is divided according to the offer. If the offer is rejected, both players get nothing. The game can be played as multiple rounds with a chance of reciprocity. The Nash Equilibrium is not necessarily to offer half of the initial money as there are multiple possible outcomes depending on the preferences and strategies of both players.

Which of the Following Statements About the Ultimatum Game Is