Scenario: Robert and Alice are participating in a reality show on television. Robert is offered $500 and is told that he can keep the money as long as he shares some of it with Alice. Robert can offer Alice as much or as little as he likes, but if Alice rejects his offer, neither of them will get to keep any money.
-Refer to the scenario above.This is an example of ________.

Question

Quizplus · Accepted Answer

This is an ultimatum game because Robert has the power to propose a division of money to Alice and if she rejects the offer, both of them will lose out on the prize money.

Scenario: Robert and Alice Are Participating in a Reality Show