In the ultimatum game, if people are purely money maximizers then we would expect:
A) Proposers to make small offers to receivers and for receivers to accept any non-zero offer.
B) Proposers to always offer 50:50 splits of the initial endowment.
C) Proposers to offer hyper-fair offers giving receivers more than 50% of the initial endowment.
D) Proposers to offer more than they would in a dictator game.

Question

Quizplus · Accepted Answer

In the ultimatum game, if individuals were purely motivated by maximizing their own monetary gain, proposers would logically make the smallest possible offers to receivers, knowing that rational receivers would accept any offer greater than zero to ensure they receive some money rather than nothing. This is because accepting any non-zero offer is better than rejecting the offer and receiving nothing, from a purely financial perspective.

In the Ultimatum Game, If People Are Purely Money Maximizers