Which of the following is the correct description of the "impunity game?"
A) It is a paired bargaining game with the proposer offering a split of the original endowment to the responder. The responder can accept this offer or reject. If the responder rejects the offer then both the proposer and the responder get nothing.
B) It is a paired bargaining game with the proposer offering a split of the original endowment to the responder. The responder has no say and has to accept what the proposer has offered.
C) It is a paired bargaining game with the proposer offering a split of the original endowment to the responder. The responder can accept this offer or reject. If the responder rejects the offer then both the proposer and the responder each half of the original endowment.
D) It is a paired bargaining game with the proposer offering a split of the original endowment to the responder. The responder can accept this offer or reject. If the responder rejects the offer then the proposer still gets to keep his/her share while the responder gets nothing.
Correct Answer:
Verified
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