Essay

Critique of Fairness in an Economic Interaction

Consider a two-player economic interaction where one person (the Proposer) is given $100 and must offer a portion of it to a second person (the Responder). The Proposer can make any offer they choose. If the Responder accepts the offer, the money is split as proposed. If the Responder rejects the offer, neither person receives any money. The Proposer offers $1, and the Responder accepts.

Critique this outcome from the perspectives of both procedural and substantive fairness. In your judgment, is the final allocation of $99 for the Proposer and $1 for the Responder a 'fair' outcome overall? Justify your conclusion by weighing the two types of fairness.

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Updated 2025-08-05

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