Laboratory experiments of the ultimatum games revealed that
A) participants' actions were always part of a Nash equilibrium.
B) participants always split the money equally.
C) the first mover always kept the smaller share.
D) the first mover always kept the largest share.

Question

Quizplus · Accepted Answer

In ultimatum games, the first mover (the proposer) decides how to split a sum of money with a second player (the responder), who then accepts or rejects the offer. If the offer is rejected, both players get nothing. Laboratory experiments have shown that the first mover often proposes a split that favors themselves but still offers a significant share to the second player to avoid rejection, thus typically keeping the larger share.

Laboratory Experiments of the Ultimatum Games Revealed That