In the ultimatum experiment,what are the usual outcomes?
A)Proposer proposes to give the minimum positive amount to the responder in all the rounds.
B)Proposer and responder are rational all the time.
C)Proposer proposes to give about 30~40% of total amount to the responders.
D)Proposer proposes to give 60~70% of total amount to the responders

Question

Quizplus · Accepted Answer

In the ultimatum experiment, it is usually observed that proposers offer to give about 30~40% of the total amount to the responders. This is because if the proposer offers a very low amount, the responder may reject the offer out of fairness considerations. However, if the proposer offers too high, they may receive less profit. Therefore, a moderate offer of around 30~40% is usually the best choice for both parties. Option A and D can be eliminated as they are extreme and are less likely to happen in most ultimatum experiments. Option B is also not correct as human behavior is not always rational.

In the Ultimatum Experiment,what Are the Usual Outcomes