Imagine an ultimatum game in which proposers are asked to divide $10 between themselves and a recipient
2.1. Imagine an ultimatum game in which proposers are asked to divide $10 between themselves and a recipient. In the following matrix, the rows correspond to proposers in this game and the columns correspond to recipients in this game. Fill out each cell in this matrix with the amount of money (in dollars and cents) that would be sent by the proposer in the corresponding row to the recipient in the corresponding column. Assume that the proposer knows the recipient’s social preference utility function. [16 points]
αrec; βrec | αrec; βrec.25 | αrec; βrec.75 | αrec; βrec.95 | |
αpro; βpro | ||||
αpro; βpro.25 | ||||
αpro; βpro.75 | ||||
αpro; βpro.95 |