Conventional economic theory suggests that in the ultimatum game,the player proposing a split of $100 will propose that she get $99 and that the other player get $1.By the same reasoning,if the amount to be split is $200,the player proposing the split will propose that she gets
A) $100 and that the other player gets $100.
B) $198 and that the other player gets $2.
C) $199 and that the other player gets $1.
D) $200 and that the other player gets nothing.

Question

Quizplus · Accepted Answer

According to conventional economic theory, the player proposing the split will aim to maximize their own earnings while still offering the other player a small amount. In a $200 split, if the proposer offers $198 to themselves and $2 to the other player, then the other player may reject this offer as unfair and the proposer will receive nothing. However, if the proposer offers $199 to themselves and $1 to the other player, this is still a favorable split for the proposer, but is more likely to be accepted by the other player as a fair offer. Therefore, C is the best choice.

Conventional Economic Theory Suggests That in the Ultimatum Game,the Player