Are You Prepared to Share? (Summer, 2018)
Prepared by:
Joseph Malkevitch
Mathematics Department
York College (CUNY)
Jamaica, NY 11451
email:
malkevitch@york.cuny.edu
web page:
http://york.cuny.edu
Activity
The Free Lunch Foundation (FLF) offers two people X and Y the following opportunity one time only opportunity, the rules being carefully explained to both people (players).
X will be given $30 which X must split into two parts, one for X and the other for Y. X is not able to communicate or discuss with Y how Y looks at matters.
If Y accepts the amount Y is offered by X, then FLF gives X the $30 and the split is carried out. If Y does not accept what is offered them FLF gives X nothing, so neither X nor Y get anything. Again, both X and Y understand how the arrangement works.
Question 1
If you were offered the role of X how would you split the $30?
Question 2.
What do you think people when offered this opportunity actually do?
Question 3.
If you are X but someone made you the offer you decided on in Question 1 for Y (that is, you play the role of Y for now), would you (as Y) accept the offer you decided to make?