Short Answer

Predicting the Rational Outcome in a Competitive Ultimatum Game

A Proposer is given $100 to divide. The Proposer makes a single take-it-or-leave-it offer simultaneously to two Responders. If at least one Responder accepts, the deal is made with an accepting Responder (if both accept, one is chosen at random). If neither Responder accepts, no one receives any money. Assuming both Responders are purely rational and self-interested, what is the lowest offer the Proposer can make that they should expect to be accepted? Briefly explain the reasoning behind your answer.

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Updated 2025-07-23

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