The results of the ultimatum game illustrate the fact that
A) people's behavior is often driven by an innate sense of fairness.
B) homo economicus is a good description of people's behavior.
C) self-interest brings out the most efficient economic outcome.
D) Both b and c are correct.

Question

Quizplus · Accepted Answer

The ultimatum game involves one player offering a portion of a sum of money to another player, who then decides whether to accept or reject the offer. If the offer is rejected, neither player receives any money. Studies have consistently found that when the offer is perceived as unfair, the receiver is more likely to reject it, even when it means both players lose out. This suggests that people's behavior is often driven by an innate sense of fairness, rather than purely self-interested motives (as in choice B) or the most efficient economic outcome (as in choice C). Therefore, only choice A is correct. Choice D is incorrect because choice B is not a good description of people's behavior.

The Results of the Ultimatum Game Illustrate the Fact That