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Question
Consider the following scenario when answering the following questions:
Derek and Heriberto are playing an ultimatum game where Derek is given $500 and asked to propose a way of splitting it with Heriberto. When Heriberto learns Dereks proposal, Heriberto chooses whether to accept or reject the split. If Heriberto accepts the split, both players receive the money according to Dereks split proposal. If Heriberto rejects the split, both players receive nothing. This game will be played only once, so Derek does not have to worry about reciprocity when making his choice.
Peggy and Marcy are playing an ultimatum game where Peggy is given $500 and asked to propose a way of splitting it with Marcy. When Marcy learns Peggys proposal, Marcy chooses whether to accept or reject the split. If Marcy accepts the split, both players receive the money according to Peggys split proposal. If Marcy rejects the split, both players receive nothing. This game will be played only once, so Peggy does not have to worry about reciprocity when making her choice.
Which of the following split proposals would Marcy be most likely to accept if she and Peggy were playing the game in an experimental session and both players adhered to bounded rationalism?
a. Peggy receives $449.99 and Marcy receives $50.01.
b. Peggy receives $499.99 and Marcy receives $0.01.
c. Peggy receives $400.00 and Marcy receives $100.00.
d. Peggy receives $350.00 and Marcy receives $150.00.
e. Peggy receives $250.00 and Marcy receives $250.00.
Answer
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