Evidence from experiments in which real people play the ultimatum game supports the idea that people
A)are rational wealth-maximizers.
B)tend to be driven by fairness, without regard for their own self-interest.
C)are driven by both fairness and self-interest.
D)have trouble calculating their own levels of wealth.

Question

Quizplus · Accepted Answer

The ultimatum game involves two players, one who is given a sum of money and asked to offer a portion of it to the other player. The second player can then either accept or reject the offer. If the offer is accepted, both players receive the agreed-upon amounts. If the offer is rejected, neither player receives anything. Studies show that most people will reject unfair offers, indicating a concern for fairness. However, people also tend to make offers that are somewhat fair but still favor their own self-interest. This suggests that both fairness and self-interest are driving factors in the decisions people make in the ultimatum game, making choice C the best answer.

Evidence from Experiments in Which Real People Play the Ultimatum