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.If Alice values fairness,________.

Question

Quizplus · Accepted Answer

Given that Alice values fairness, she is likely to accept an offer that she deems to be fair. A $250 offer from Robert would be a fair split of the $500, as both parties would receive an equal share. Therefore, Robert should offer Alice $250 if he wants to maximize his chances of keeping the money.

Scenario: Robert and Alice Are Participating in a Reality Show