Figure: Game Tree for a Simplified Ultimatum Game

Responder's Strategic Decision in the Ultimatum Game

In a strategic interaction, a 'Proposer' is given $100 and must make a take-it-or-leave-it offer to a 'Responder'. The Proposer is limited to two possible offers: a '$50 offer' or a '$20 offer'. The Responder can either accept the offer, in which case the money is split as proposed, or reject it, in which case both players receive$0. Match each sequence of actions to its final monetary outcome.

In a one-time interaction, a 'Proposer' is given $100 and must decide between two offers to make to a 'Responder': a '$50 offer' or a '$20 offer'. The Responder can either accept the offer, splitting the money as proposed, or reject it, in which case both individuals receive$0. From the Proposer's perspective, what is the fundamental trade-off when deciding between the two offers?

Analyzing Player Interdependence

In a one-shot interaction, a Proposer is endowed with $100 and can make one of two take-it-or-leave-it offers to a Responder: a 'fair offer' of$50 or an 'unfair offer' of $20. The Responder can then either accept the offer, in which case the money is divided as proposed, or reject it, in which case both individuals receive$0. If the Proposer makes the 'unfair offer' and the Responder accepts it, what is the final monetary outcome for the Proposer and the Responder, respectively?

Rational Decision in a Simplified Game

In a single-round interaction, a 'Proposer' is given $100 and must choose between two possible offers to a 'Responder': a '$50 offer' or a '$20 offer'. The Responder can then accept the offer, in which case the money is divided as proposed, or reject it, resulting in$0 for both. If the Proposer makes the '$20 offer', which statement best evaluates the central conflict the Responder faces?

Strategic Decision-Making Under Uncertainty

Evaluating a Strategic Decision

In a one-time interaction, an individual ('Proposer') is given $100 and must make a take-it-or-leave-it offer to another individual ('Responder'). The Proposer has only two choices: offer$50 (keeping $50) or offer$20 (keeping $80). The Responder can either accept the offer, in which case the money is divided as proposed, or reject it, in which case both individuals receive$0. Arrange the events for a scenario where the $20 offer is made and subsequently rejected.

Proposer's Strategic Calculation