Microeconomics, Student Value Edition (2nd Edition)
2nd Edition
ISBN: 9780134461786
Author: Daron Acemoglu, David Laibson, John List
Publisher: PEARSON
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Chapter 17, Problem 8P
To determine
Equilibrium in a game where the “responder” becomes the first player in the ultimatum game.
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Two players play the Ultimatum Game, in which they are to split $20. A purely rational agent would only reject an offer of …
Two players play the Ultimatum Game, in which they are to split $20. A purely rational agent would only reject an offer of …
Group of answer choices...
-$20
-$19
-$1
-$0
-$10
Evaluate the following statement. “We shouldn’t generalize from what people do in the ultimatum game because $10 is a trivial amount of money. When larger amounts of money are on the line, people will act differently.”
Chapter 17 Solutions
Microeconomics, Student Value Edition (2nd Edition)
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