Question: Consider a trust game, where the two players start with $10 each, then the first player sends $5 to the second player, which is tripled
Consider a trust game, where the two players start with $10 each, then the first player sends $5 to the second player, which is tripled to $15 along the way, giving the second player $25 and the first player $5. The second player can return money to the first player. If the second player has Fehr-Schmidt utility with alpha = 1 and beta = 0.8, what will be the utility of the second player if he does not return any money to the first player?
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