Final answer:
The ultimatum game is a demonstration of human decision-making in economics, highlighting the interactions between fairness and rationality as players negotiate with a sum of money.
Step-by-step explanation:
The ultimatum game involves two players and serves as a model to study human decision-making. In this game, one player receives a sum of money and must decide on the amount to offer to the second player. The second player then chooses to accept or reject the offer. If the offer is rejected, both players end up with nothing, illustrating the dynamics of fairness and rationality in economic decisions.
In a traditional classroom scenario, the game can be a way for students to learn about probability, strategic thinking, and psychology. A discussion on how students would play the game as Player A or Player B can help illustrate the balance between competitive and cooperative strategies, and what decisions might maximize one's benefit without alienating the other player.