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good explanations and good diagrams, thank you! (a) Describe the set-up of the two-player version of the ultimatum game [3 points] (b) If Alice and

good explanations and good diagrams, thank you!

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(a) Describe the set-up of the two-player version of the ultimatum game [3 points] (b) If Alice and Bob are fully rational players with purely self-regarding preferences (i.e. if they don't care about each other's payoffs), what will be the result if they play the game you just described? [ 2 points] (C) Is the result from part (c) realistic? Why or why not? How would Alice's or Bob's utility functions need to be different to give a different kind of result? (Give a mathematical example.) [5 points]

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