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Consider the ultimatum game we dis- cussed in class, where two players, Ali and Bianca, divide between them potential surplus from trade amounts to $10.

Consider the ultimatum game we dis- cussed in class, where two players, Ali and Bianca, divide between them potential surplus from trade amounts to $10. Now suppose that the offer Ali (henceforth A) makes to Bianca (henceforth B) has to be in whole dollars (thus, she can offer 0, 1, 2, ... , 10 dollars to Player 2). The rest of the game remains unchanged. In particular, if B rejects, the surplus is not realized and the players' payoffs are (0, 0), where the first zero is A's payoff and the second zero is B's payoff

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