Anne and Bob are brother and sister, and upon their uncle's death they receive $100 to split among themselves. Anne must decide how much of that $100 she wants and propose Bob to take the rest. Bob can either accept or reject Anne's proposal: if the accepts then the split is made, and if he rejects it they both receive nothing. If you were Anne what would you choose?
Someone asked me this question today and I didn't know what to make of it. There are many possibilities that would be acceptable to both. He told me that people usually take more than $50, which is a plausible outcome, but not the only one. Anne could certainly take $99.99 and the Schadenfreude, leave Bob a penny, and Bob would take it. Could Anne take the whole $100? If Anne takes the $100 then Bob gets nothing either way. I'm still mulling over that one. Anyway, what would you do if you were Anne?