Asked by
Tyler Perez
on Dec 19, 2024
Verified
Suppose Faith and Mickey are playing both dictator and ultimatum games. Faith is the dictator/proposer and has $1,000 to allocate. Based on repeated experiments of the dictator and ultimatum games, what payouts to Faith would be most consistent with the findings of behavioral economists?
A) Faith receives $1,000 from the dictator game and $1,000 from the ultimatum game.
B) Faith receives $500 from the dictator game and $420 from the ultimatum game.
C) Faith receives $500 from the dictator game and $500 from the ultimatum game.
D) Faith receives $580 from the dictator game and $540 from the ultimatum game.
Dictator Game
A game used in economic studies where a participant known as the "dictator" decides how to divide a certain amount of money between themselves and another participant.
Ultimatum Game
A game in economic experiments where one player proposes how to divide a sum of money with another, who can accept or reject the proposal, where rejection means neither gets anything.
- Elucidate the essence and consequences of the dictator and ultimatum games in demonstrating aspects of human conduct.
Verified Answer
ET
Learning Objectives
- Elucidate the essence and consequences of the dictator and ultimatum games in demonstrating aspects of human conduct.