Short Answer

Responder's Rationale for Rejecting a Zero Offer

In a one-shot interaction, a 'Proposer' is given a sum of money and must offer a portion to a 'Responder'. The Responder can accept, and they both get the proposed amounts, or reject, and they both get nothing. Based on consistent experimental findings, if the Proposer offers zero, the Responder will reject it. Analyze the Responder's reasoning for this decision, explaining the trade-off they are making.

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Updated 2025-08-07

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