Assuming the standard assumptions, in an infinitely long repeated-play ultimatum game, the second player's best strategy is most likely to:
A) reject offers that appear unfair.
B) will always accept any offer.
C) will always accept only those offers over 50 percent of the total.
D) reject all offers.

Question

Quizplus · Accepted Answer

In an infinitely long repeated-play ultimatum game, the second player can always threaten to reject any offer that is less than fair, and the first player will eventually learn to offer a fair share to avoid losing the game.

Assuming the Standard Assumptions, in an Infinitely Long Repeated-Play Ultimatum