Suppose Justine and Sarah are playing the ultimatum game. Justine is the proposer, has $200 to allocate, and Sarah can accept or reject the offer. Based on repeated experiments of the ultimatum game, what combination of payouts to Justine and Sarah is most likely to occur?

Question

Quizplus · Accepted Answer

Repeated experiments of the ultimatum game show that offers close to an even split are more likely to be accepted. Therefore, a split of $102 for Justine and $98 for Sarah is most likely to occur, as it closely resembles a fair division of the $200.

Suppose Justine and Sarah Are Playing the Ultimatum Game