Question

In the ultimatum​ game, if neither the allocator nor the recipient cared about​ fairness, what would be the optimal distribution of​ $20.00?

Answer 1

If neither the allocator nor the recipient cared about fairness, optimal play in the ultimatum game is straightforward: The allocator should propose a division of the money in which the allocator receives $19.99 and the recipient receives $0.01. The allocator has maximized his or her gain. The recipient should accept the division, because the alternative is to reject the division and receive nothing at all.