In a one-time, anonymous interaction, Person A is given $100 and must propose a split with Person B. Person B can either accept the proposed split, in which case both get the money as proposed, or reject it, in which case neither person receives anything. Person A offers $5 to Person B, keeping $95 for themselves. Person B rejects the offer. Which statement best analyzes Person B's decision?
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In a one-time, anonymous interaction, Person A is given $100 and must propose a split with Person B. Person B can either accept the proposed split, in which case both get the money as proposed, or reject it, in which case neither person receives anything. Person A offers $5 to Person B, keeping $95 for themselves. Person B rejects the offer. Which statement best analyzes Person B's decision?
Analyzing Economic Decisions in a Community Project
The decision of a Responder in an ultimatum game to reject a low but positive monetary offer is considered economically irrational because it violates the principle of maximizing personal monetary gain.
Predicting Behavior Based on Social Norms
Evaluating Motivations in the Ultimatum Game
In a one-shot, anonymous game, a 'Proposer' offers a split of a sum of money to a 'Responder'. The Responder can either accept or reject the offer. If they reject, neither person gets anything. Match each of the following motivations with the Responder's most likely corresponding thought process for their decision.
In a one-shot bargaining game where one person proposes how to split a sum of money and a second person can accept or reject the offer (with rejection meaning neither gets anything), the second person's decision to reject a small but positive offer is often motivated by social preferences like a desire for fairness or ______, which is the impulse to punish behavior perceived as unkind.
Analyzing the Impact of Anonymity on Bargaining Behavior
In an experiment, two groups of people (Group A and Group B) play a bargaining game. In this game, one person (the 'Proposer') is given a sum of money and must offer a portion of it to a second person (the 'Responder'). The Responder can either accept the offer, and the money is split as proposed, or reject it, in which case neither person receives anything. The interactions are anonymous and happen only once. The results are summarized below:
Group A Group B Average Offer from Proposer 42% of the total sum 28% of the total sum Rejection Rate for Offers < 20% 90% 35% Based on this data, which conclusion is best supported?
In a one-shot, anonymous bargaining game, one individual (the 'Proposer') is given $20 and instructed to offer a portion of it to a second individual (the 'Responder'). If the Responder accepts, the money is split as proposed. If the Responder rejects, neither individual receives any money. The Proposer offers $2 to the Responder. The Responder rejects the offer. Which statement best analyzes the Responder's action based on common findings in behavioral economics experiments?
Predicting Behavior Based on Social Norms