Peggy and Marcy are playing an ultimatum game where Peggy is given $500.00 and asked to propose a way of splitting it with Marcy.When Marcy learns Peggy's proposal,Marcy chooses whether to accept or reject the split.If Marcy accepts the split,both players receive the money according to Peggy's split proposal.If Marcy rejects the split,both players receive nothing.This game will be played only once,so Peggy does not have to worry about reciprocity when making her choice.
Which of the following split proposals would Marcy be most likely to accept if she and Peggy were playing the game in an experimental session and both players adhered to bounded rationalism?
A) Peggy receives $449.99 and Marcy receives $50.01.
B) Peggy receives $499.99 and Marcy receives $0.01.
C) Peggy receives $400.00 and Marcy receives $100.00.
D) Peggy receives $350.00 and Marcy receives $150.00.
E) Peggy receives $250.00 and Marcy receives $250.00.

Question

Quizplus · Accepted Answer

In an ultimatum game, players often reject offers they perceive as unfair, even at a cost to themselves. A 50/50 split is perceived as the most fair and is most likely to be accepted by Marcy, adhering to bounded rationality where fairness and equity are valued.

Peggy and Marcy Are Playing an Ultimatum Game Where Peggy