In laboratory tests of the ultimatum game using buyers and sellers in a market context, "demand withholding" is likely to be more pronounced when:
A) The surplus accruing to sellers is much larger than that accruing to buyers and the buyers are made aware of this discrepancy.
B) The surplus accruing to buyers is much larger than that accruing to sellers the buyers are made aware of this discrepancy.
C) The surplus accruing to sellers is equal to that accruing to buyers and the buyers are made aware of this discrepancy.
D) The surplus accruing to sellers is much larger than that accruing to buyers, but the buyers are completely unaware of this fact.

Question

Quizplus · Accepted Answer

Demand withholding is more likely to occur when buyers are aware that sellers are getting a much larger surplus than they are. This awareness can lead to buyers withholding demand as a form of protest or negotiation tactic to seek a more equitable distribution.

In Laboratory Tests of the Ultimatum Game Using Buyers and Sellers