Edgar and felicity are players in an ultimatum game for $100, where felicity is the proposer and edgar is the responder. suppose that felicity proposes that she receive $95, while edgar receives only $5. how would behavioral economists expect edgar to respond?
a. even though edgar would be better off having $5 versus nothing, edgar will likely see the offer as unfair and reject it.
b. edgar will accept the $5, as rejecting it would be economically irrational.
c. edgar will suggest a counteroffer that he would accept.
d. edgar will accept the offer if he is thinking with brain system 1 but reject it if thinking with brain system.

Suppose there are three types of consumers who attend concerts at your university’s performing arts center: students, staff, and faculty. each of these groups has a different willingness to pay for tickets; within each group, willingness to pay is identical. there is a fixed cost of $1,000 to put on a concert, but there are essentially no variable costs. for each concert: i. there are 140 students willing to pay $20. (ii) there are 200 staff members willing to pay $35. (iii) there are 100 faculty members willing to pay $50. a) if the performing arts center can charge only one price, what price should it charge? what are profits at this price? b) if the performing arts center can price discriminate and charge two prices, one for students and another for faculty/staff, what are its profits? c) if the performing arts center can perfectly price discriminate and charge students, staff, and faculty three separate prices, what are its profits?