If you are assigned the role of Player A in the Ultimatum game and you propose that player B gets $1 and you get $99
a. you are behaving as a rational wealth-maximizer and player B is likely to accept your offer.
b. you are behaving as a rational wealth-maximizer and player B is likely to reject your offer.
c. you are not behaving as a rational wealth-maximizer and player B is likely to accept your offer.
d. you are not behaving as a rational wealth-maximizer and player B is likely to reject your offer.
b
You might also like to view...
Positive economics does not require us to believe that actual happiness is the same as utility as modeled in economic theory.
Answer the following statement true (T) or false (F)
________, in economics, refers to a preference for equal outcomes within the target population
A) Randomness B) Rationalism C) Fairness D) Liberalism
A study conducted by Robert Shiller, a Yale Economist, found that a large majority of the public thinks that increases in inflation will not quickly lead to an increase in wages
Indicate whether the statement is true or false
Suppose the perfectly competitive equilibrium occurs such that too many units of the good are produced. This is an example of
A. greedy business people behaving in an inappropriate manner. B. firms have not yet exited the industry. C. marginal cost pricing. D. market failure.