Question

suppose justine and sarah are playing the ultimatum game. justine is the proposer, has $75 to allocate, and sarah can accept or reject the offer. based on repeated experiments of the ultimatum game, what combination of payouts to justine and sarah is most likely to occur? multiple choice $75 for justine and $0 for sarah $38 for justine and $36 for sarah $45 for justine and $30 for sarah $0 for justine and $75 for sarah

Answer 1

The most likely outcome in the ultimatum game between Justine and Sarah would be a near-fair split, such as $45 for Justine and $30 for Sarah, as offers close to fairness are more commonly accepted.

Step-by-step explanation:

Based on repeated experiments of the ultimatum game, the most likely combination of payouts to Justine (the proposer) and Sarah (the responder) would be an amount that approximates a fair split, though not necessarily an exact 50-50 division. Experimental evidence suggests that offers that deviate significantly from an equal split are often rejected, even though this means both players end up with nothing. Therefore, the most probable outcome would be one where Justine offers an amount close to a fair split to Sarah, to ensure that Sarah accepts the offer. The multiple-choice option closest to this understanding is $45 for Justine and $30 for Sarah, as it reflects a reasonable approximation of fairness, increasing the likelihood of Sarah accepting the offer.

Answer 2

Based on experimental outcomes of the ultimatum game, the most likely payout combination to be accepted by both players would be one that is near an even split, such as $45 for Justine and $30 for Sarah, as it appears relatively fair.

Step-by-step explanation:

In the ultimatum game, Justine (the proposer) has $75 to allocate, and Sarah can accept or reject the offer. Experimental data suggests that players do not behave entirely in self-interest; they often reject offers that deviate significantly from a fair split. It is more likely that an offer close to an even distribution would be accepted even if it is not exactly 50-50.

Additionally, a player's decision may be influenced by the total sum of money involved and by strategic considerations, especially if the game is repeated. As such, the most likely outcome for a one-time game would typically be $45 for Justine and $30 for Sarah or something analogous, as it appears fair enough to both parties involved.