This topic contains a solution. Click here to go to the answer

Author Question: How does the Ultimatum Game work? What does experimental evidence show about the outcome of the ... (Read 79 times)

rosent76

  • Hero Member
  • *****
  • Posts: 516
How does the Ultimatum Game work? What does experimental evidence show about the outcome of the Ultimatum game?
 
  What will be an ideal response?

Question 2

Refer to Figure 2-11. What is the opportunity cost of producing 1 pound of cashews in Indonesia?
 
  A) 3/8 of a bolt of cotton B) 5/8 of a bolt of cotton
  C) 2 2/3 bolts of cotton D) 320 bolts of cotton



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

macmac

  • Sr. Member
  • ****
  • Posts: 343
Answer to Question 1

In the Ultimatum Game, half of the players (Proposers) are given some amount of money and are paired with other players (Responders) who start with nothing. The game is a sequential game that consists of two decisions. Proposers choose how much of the money they want to offer Responders. Each Responder then decides either to accept the Proposer's offer or to reject the offer, in which case both players walk away from the experiment empty handed.
Experimental evidence suggests that very low offers are often rejected. Proposers often understand that their low offers will likely be rejected, so they rarely offer extremely low amounts. Their offer is determined in part by how much they fear a rejection (and winding up with nothing). These experimental results are inconsistent with the theoretical predictions from game theory.

Answer to Question 2

C




rosent76

  • Member
  • Posts: 516
Reply 2 on: Jun 29, 2018
Great answer, keep it coming :)


meow1234

  • Member
  • Posts: 333
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

Did you know?

Many medications that are used to treat infertility are injected subcutaneously. This is easy to do using the anterior abdomen as the site of injection but avoiding the area directly around the belly button.

Did you know?

All patients with hyperparathyroidism will develop osteoporosis. The parathyroid glands maintain blood calcium within the normal range. All patients with this disease will continue to lose calcium from their bones every day, and there is no way to prevent the development of osteoporosis as a result.

Did you know?

When blood is deoxygenated and flowing back to the heart through the veins, it is dark reddish-blue in color. Blood in the arteries that is oxygenated and flowing out to the body is bright red. Whereas arterial blood comes out in spurts, venous blood flows.

Did you know?

The Food and Drug Administration has approved Risperdal, an adult antipsychotic drug, for the symptomatic treatment of irritability in children and adolescents with autism. The approval is the first for the use of a drug to treat behaviors associated with autism in children. These behaviors are included under the general heading of irritability and include aggression, deliberate self-injury, and temper tantrums.

Did you know?

Cocaine was isolated in 1860 and first used as a local anesthetic in 1884. Its first clinical use was by Sigmund Freud to wean a patient from morphine addiction. The fictional character Sherlock Holmes was supposed to be addicted to cocaine by injection.

For a complete list of videos, visit our video library