Question: Hello, I need help understanding how to do these problems. The case is related(reference) to the 1st image. Thank you in advance! Andreoni-Miller preferences and

Hello, I need help understanding how to do these problems. The case is related(reference) to the 1st image. Thank you in advance!

is related(reference) to the 1st image. Thank you in advance! Andreoni-Miller preferences

Andreoni-Miller preferences and a Dictator Game Consider a dictator game in which the price of giving differs from 1, as in the Andreoni and Miller experiment. Specifically, let x, represent the amount of an endowment of 30 that the dictator keeps, x, the amount that the recipient receives as a result of the dictator's gift, and suppose the price of giving is 0.5. Thus, the budget constraint is: * +0.5.x, =30. In addition, suppose throughout this section that the dictator has Andreoni-Miller (i.e., CES) preferences, and consider the following cases of different parameter values for the dictator's utility function.

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