In an ultimatum game where the payoff totals $100 is split in $1 increments,the rational amount for the proposer to offer and the responder to take is

Question

Quizplus · Accepted Answer

In a rational ultimatum game, the proposer should offer the smallest possible amount ($1) because the responder, acting rationally, should accept any non-zero amount as it is better than receiving nothing.

In an Ultimatum Game Where the Payoff Totals $100 Is