In an ultimatum game where the payoff totals $100 and is split in $1 increments, the rational amount for the proposer to offer and the responder to take is
A)$0.
B)$1.
C)$50.
D)$100.

Question

Quizplus · Accepted Answer

In a purely rational scenario, the proposer would offer the smallest non-zero amount, which is $1, because the responder, acting rationally, would accept any amount greater than $0 as it is better than receiving nothing.

In an Ultimatum Game Where the Payoff Totals $100 and Is