1. For each of the games below question five, do you think the standard model is likely to be a good predictor of behavior? Why or why not?
2. Rational behavior means that you can rank your options unambiguously and that you always choose the option that is ranked best. Can you think of a situation in which you were not able to rank your options (not simply because you were indifferent between them)? Why do you think you were unable to?
3. Can you think of a situation in which you could rank your options, but you did not choose the best one? Why didnt you?
4. The standard economic model assumes that people are rational and selfish. What are some situations that you think this model would predict particularly well? Particularly badly?
5. A game that is often used by behavioural economists in their experiments with human participants is called the Dictator game. In this game, the dictator is given $10 and chooses how much to share with the recipient. Neither player knows who the other one is.
6. 1. What does standard economic theory predict will happen in this game?
   2. Suppose an experimenter had people play this game and most people chose to share $5. Can you come up with two possible theories that would explain this finding?
   3. Choose one of your theories from part b. What novel prediction does this theory make that you could test in a new experiment?
   4. The experiment in part b was done with undergraduate students in a computer lab on campus. Each dictator entered the amount they wanted to offer into a computer, and this amount was shown to the recipient. Each person then went to the experimenter to receive their payment in cash. What are three things that might compromise the external validity of this study?

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