Author Question: Standard game theory predicts a solution to the ultimatum game that is rarely observed when people ... (Read 114 times)

cagreen833 · **on:** Jul 1, 2018

Standard game theory predicts a solution to the ultimatum game that is rarely observed when people actually play the game.

The key reason that behavioral economists believe the predicted and observed outcomes differ is because people account for ________ of the outcome when making decisions. A) loss aversion
B) fairness
C) efficiency
D) utility

Question 2

Refer to Figure 9.8. If free trade in sugar is replaced by a 50 tariff in sugar, consumer surplus will

A) fall by 50.
B) fall by 26,250.
C) fall by 22,500.
D) rise by 50.
E) rise by 17,500.