Answer
The ultimatum game is as follows.
Player A offers Player B some share of 100 dollars. Player B then decides to accept the offer or decline the offer. If the offer is accepted, then Player B receives Player A's offer of the share of 100 dollars. If the offer is declined, neither Player A nor Player B receive any money.
Work Step by Step
Conventional economic theory would propose Player A offers Player B one dollar. Experiments show that the single dollar offer rarely works (and that Player A usually offers between 30 and 40 dollars, followed by an acceptance from Player B).
