You agree with another person to play a game where one of you could win up to $100. Before you play you learn the rules. The rules are:
The game begins with a coin toss
The coin toss decides each players roles of either player A or B
Player A proposes the division of the $100.
Player B then decides whether to agree or not to the proposal
If player B agrees, the two players get the agreed upon amount. if player B disagrees, neither player recieves anything.
If you are player A what would be your proposal?
Please choose which you feel is the best response, since I cannot include 101 options
This was from Greg Mankiws textbook microeconomics, but I was interested for myself what people thought.
Edit: In this game each player is a volunteer, its not their money to begin with so they just decide how it is split up.