A new game show asks two strangers to negotiate with one another to determine whether they will split a shared prize or whether they will steal the prize only for themselves. If both decide to split, then prize money is split. If one decides to steal, then the stealer wins the entire prize. If both decide to steal, then no one wins. What does this exemplify?
A. the Prisoner's Dilemma
B. the Ultimatum game
C. rational economic thinking
D. prospect theory
Answer: A
Psychology
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