Scenario: Phillip and Joseph are two classmates who represented their college in a quiz competition as a team and won $500. The winning amount was handed over by the organizers to their professor, who had accompanied them. The professor gave the money to Phillip and asked him to offer any amount he wants to Joseph. If Joseph accepts the offer, the money would be split in the decided proportion between them. However, if Joseph rejects the offer, the money would go to their college fund.
-Refer to the scenario above.This is an example of ________.

Question

Quizplus · Accepted Answer

This scenario is an example of an ultimatum game, where one player (Phillip) has the power to make an offer to the other player (Joseph) and the latter has the option to either accept or reject the offer. If Joseph rejects the offer, both players lose, as the money would go to their college fund. If Joseph accepts the offer, the winning amount would be split between them, but the decision making power lies with Phillip.

Scenario: Phillip and Joseph Are Two Classmates Who Represented Their