If a Proposer and a Responder are asked to split $100 in the ultimatum bargaining game, standard economic theory would predict that the Responder should:
A)reject any amount over $50.
B)accept any amount offered by the Proposer.
C)reject any amount less than $50.
D)only accept an offer for exactly $50.

Question

Quizplus · Accepted Answer

The ultimatum bargaining game is a game in which the first player has the power to confront the second player with a take-it-or-leave-it offer. In this setting, the Responder should accept any amount offered by the Proposer, and the Proposer should offer the Responder the smallest dollar amount possible.

If a Proposer and a Responder Are Asked to Split