Scenario: Jack and Jill are siblings. Jack's father asked him how much money he would offer Jill if he gives him $50 as pocket money. He also told Jack that if Jill refuses the offer Jack makes, neither of them will get any money.
-Refer to the scenario above.This is an example of ________.

Question

Quizplus · Accepted Answer

This is an example of an ultimatum game, where one player (Jack) makes an offer to the other player (Jill) and if the offer is refused, both players get nothing. In this scenario, the best choice for Jack would be to offer Jill a fair share of the $50 so that she is more likely to accept the offer. If he offers too little, Jill may refuse and both get nothing. If he offers too much, he will lose out on his own pocket money.

Scenario: Jack and Jill Are Siblings