In the ultimatum game
A) One player (the proposal) offers to give the second player (the recipient) some share of a fixed prize; the recipient then decides whether to accept or reject the proposal
B) Is a single-stage game
C) One player (the proposal) gives the second player (the recipient) some share of a fixed prize; the recipient must keep the amount given
D) Was proposed by John Nash

Question

Quizplus · Accepted Answer

In the ultimatum game, the recipient has the power to reject the proposal if they perceive it to be unfair, even though this would result in both players getting nothing. Therefore, the proposal needs to offer a fair enough share to the recipient to incentivize them to accept the proposal. Thus, in this game, offering a fair proposal is the best strategy for the proposer if they want the recipient to accept.

In the Ultimatum Game