question archive Boris and Leo are playing an ultimatum bargaining game, with £1000 to share
Boris and Leo are playing an ultimatum bargaining game, with £1000 to share
Subject:EconomicsPrice: Bought3
Boris and Leo are playing an ultimatum bargaining game, with £1000 to share. Boris is the proposer. Suppose Leo has the following preferences: his utility in monetary terms is the amount of money he gets minus 40 percent of Boris's amount Which of the following statements is/are correct? a) If Leo's preferences change so that his utility in monetary terms were the amount of money he gets minus 100 percent of Boris's amount, his minimum acceptable offer would increase. b) The minimum offer Leo will accept is larger than £250. c) The description of Leo's preferences suggest that Leo is altruistic.
