Suppose Gina and Henry play two rounds of the ultimatum game. In the first round they play for $10; in the second round they play for $1,000. In the first round Gina suggests an 80/20 split ($8 to Gina, $2 to Henry), but Henry quickly rejects the offer as unfair. Assuming Gina is interested in gaining financially from the experience and that she understands behavioral economics, we would expect her to

C. offer a more unequal split ($900/$100) in order to gain more for herself and figuring Henry will accept the split because $100 is better than nothing.

Explanation:

Since in the question it is mentioned that the first round play $10 then for second it would be $1,000. Split ratio is 80 by 20 but the same is rejected by Henry

For understanding the behavioral economics, i.e decision making effects  she should offer more unequal split i.e $900 by $100 so that she gain more as compared to Henry and at the same time Henry accept the $100 thinking that it is better than nothing

Hence, the correct option is c.

answer; break-even analysis;