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

Author Question: People are sometimes seen to give up money to make an allocation more fair. What experiment could be ... (Read 115 times)

urbanoutfitters

  • Hero Member
  • *****
  • Posts: 530
People are sometimes seen to give up money to make an allocation more fair. What experiment could be used to determine if this is because people truly care about fairness or because people want to avoid the consequences of others' spite?
 a. The Ultimatum Game could be run to see if an even split is proposed.
  b. The Dictator Game could be run to see if an even split is proposed.
  c. The Battle of the Sexes could be run to see if players choose the rival's preferred outcome.
  d. The repeated Prisoners Dilemma could be run to see if players can tacitly collude on Silent.

Question 2

Consider the same ultimatum game as in the previous questions but consider yet new preferences reflecting envy. In particular, now assume players get 1 util per dollar earned. That is all for the player who earns at least as much as the other. The player who earns strictly less than the other loses 1 util for each dollar difference. Which of the following is an offer that arises in a subgame-perfect equilibrium with these preferences?
 a. 1.
  b. 2.
  c. 4.
  d. 5.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

jaaaaaaa

  • Sr. Member
  • ****
  • Posts: 341
Answer to Question 1

b

Answer to Question 2

c




urbanoutfitters

  • Member
  • Posts: 530
Reply 2 on: Jul 1, 2018
Wow, this really help


xthemafja

  • Member
  • Posts: 348
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

Did you know?

According to research, pregnant women tend to eat more if carrying a baby boy. Male fetuses may secrete a chemical that stimulates their mothers to step up her energy intake.

Did you know?

A recent study has found that following a diet rich in berries may slow down the aging process of the brain. This diet apparently helps to keep dopamine levels much higher than are seen in normal individuals who do not eat berries as a regular part of their diet as they enter their later years.

Did you know?

In most cases, kidneys can recover from almost complete loss of function, such as in acute kidney (renal) failure.

Did you know?

The U.S. Pharmacopeia Medication Errors Reporting Program states that approximately 50% of all medication errors involve insulin.

Did you know?

Eat fiber! A diet high in fiber can help lower cholesterol levels by as much as 10%.

For a complete list of videos, visit our video library