Suppose Gina and Henry play two rounds of the ultimatum game. In the first round they play for $10; in the second round they play for $1,000. In the first round Gina suggests an 80/20 split ($8 to Gina, $2 to Henry), but Henry quickly rejects the offer as unfair. If in the second round Gina offers the same split ($800 to Gina, $200 to Henry), research by behavioral economists suggests that Henry will
a. accept the offer because the dollar amount he would forgo by rejecting is substantial.b. counteroffer with a more even split.c. weigh the offer much more carefully because of the dollar amounts involved but ultimately reject the offer.d. exhibit a stronger negative reaction than the first time and ultimately reject the offer.

Respuesta :

Answer:

D) exhibit a stronger negative reaction than the first time and ultimately reject the offer.

Explanation:

Statistically, over 80% of the participants reject unfair proposals. As more money is involved, the percentage of rejection tends to diminish, but $200 could only be considered a lot of money in extremely poor countries.

Some experiments carried out in the US and other countries point out that when the unfair offer involves around 80% (at least 40 weeks pay) of annual income, the percentage of rejections falls to almost 0. Probably if Gina offered $20,000 to Henry and kept $80,000 to herself, then Henry would accept.

Most of the times repeated unfair proposals where the amounts are very small tend to be seen as offensive by the receiver.