Consider the Dictator Game, a two-player game often played in experimental economics labs. In the Dictator game,
Question:
a. According to traditional economic theory, what should the first player offer the second?
b. In experimental settings, the average offer given to the second player is about 30% of the initial amount. Explain how such an offer might not be motivated by an innate sense of fairness.
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Related Book For
Microeconomics
ISBN: 9781464146978
1st Edition
Authors: Austan Goolsbee, Steven Levitt, Chad Syverson
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