Consider the following scenario to answer the questions that follow.
Sarah and Laura are playing an ultimatum game where Laura is given an eight-slice pizza and asked to propose a way of splitting it with Sarah. When Sarah learns Laura's proposal, Sarah chooses whether to accept or reject the split. If Sarah accepts the split, both players receive the slices of pizza according to Laura's split proposal. If Sarah rejects the split, both players receive nothing. This game will be played only once, so Laura does not have to worry about reciprocity when making her choice. Assume that both players enjoy pizza and each would strictly prefer to eat more pizza than less.
-Which of the following is the fairest split proposal Laura can offer?
A) Laura receives three slices and Sarah receives five slices.
B) Laura receives one slice and Sarah receives seven slices.
C) Laura receives two slices and Sarah receives five slices.
D) Laura receives seven slices and Sarah receives one slice.
E) Laura receives four slices and Sarah receives four slices.

Question

Quizplus · Accepted Answer

In the ultimatum game, Laura's proposal should be the fairest split so that Sarah is more likely to accept it. However, since Sarah has the power to reject the split, Laura should also propose a split that leaves Sarah with more than zero slices to minimize the risk of rejection.
Option E - Laura receives four slices and Sarah receives four slices - is the fairest split proposal, as it offers an equal split, which is often considered the fairest solution in negotiation situations. This option also minimizes the risk of rejection since it offers a balanced split, which both players may find acceptable. Therefore, Laura should propose this split to increase the likelihood of acceptance and ensure that both players receive some pizza.

Consider the Following Scenario to Answer the Questions That Follow