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Policy Analysis Final Exam
Policy Analysis Final Exam
Policy Analysis Final Exam
Response: Ultimatum Game theory is the best explaination. The game Ultimatum is a
game of exchange of behavioral economics which is played through numerous trials. The
situation places two people 's monetary interests into close association. There's an amount of
money in a standard Ultimatum game that can be split between two players, a proposer and a
respondent. A sum of 10 dollars is often used. The proposer is placed in control of the money
and has to make an offer to the responder. If that offer is accepted, both the proposer and the
respondent will each receive their agreed amounts. If they disagree, and the respondent
refuses the offer of the proposer, therefore no one can obtain any income.