Ultimatum Game / Study Group Free Riding
1. You are given an offer to split a $20 bill. The other player offers you $1. If you accept the offer, you keep the $1 and the other player keeps $19. If you reject the offer, neither of you will get anything. Do you take the offer?
2. How could you take the advantage away from the other player in the ultimatum game?
Study Group Free Riding
1) In the game shown here, change the ranking of values that Sally and Joe place on leisure and grades to change the game from a prisoners’ dilemma into a game of chicken with two equilibria.
2) Give advice to Joe about how to change the game to his advantage.
Sally Shirk C+Leisure , C+Leisure B+Leisure , B
Work B, B+Leisure A , A
Upper left is an equilibrium if both students rank the outcomes as follows:
1) A grade of B and leisure is better than
2) a grade of A and no leisure, which is better than
3) a grade of C and leisure, which is better than
4) a grade of B and hard work. 2