Question
In class we discussed a version of the ultimatum game in which the available surplus is drawn from a known distribution of surpluses. The Proposer
In class we discussed a version of the ultimatum game in which the available surplus is drawn from a known distribution of surpluses. The Proposer observes the realized surplus before making their offer to the Responder. The Responder, however, observes only the offer made, without knowing which value from the distribution of surpluses was realized.
Describe a real-world setting that parallels this ultimatum game with asymmetric information. Be clear in how the various elements of your setting map to the different components of the ultimatum game.
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