A two-person game in which player 1 divides an amount of money between the two players and the opponent either accepts or rejects the proposal is called a(n)
A) trigger game
B) ultimatum game
C) grim strategy game

Question

Quizplus · Accepted Answer

The described game is the ultimatum game, where player 1 is known as the proposer and player 2 as the responder. The proposer divides a sum of money and offers a portion of it to the responder. The responder can either accept the offer, and both players receive their allocated amount, or reject the proposal, resulting in both players receiving nothing. The ultimatum game is used to study fairness, social norms, and decision-making behavior. Therefore, the best choice is B, the ultimatum game.

A Two-Person Game in Which Player 1 Divides an Amount