solve it please.

1. The utility function for the FS model is given below. (6 points) 1 1 U = Ti-am7 (u; ui) Bm; (U. (u; - uz) (1) n- 1 n- jEH, jeLi a) How does the FS model differ from the ERC model? Explain the meaning of parameters a and B. (2) b) Assume that there are only 2 individuals, i and j. Draw a graphical representation of i's utility in the FS model where i has a set amount of income x and the income of the other individual j varies. Show individual i's utility on the y axis and the income of individual a on the x-axis. (2) c) Fehr and Schmidt make the assumption that a > 3, explain the rea- soning behind this assumption. (1) d) Go back to the dictator game in question 1. The utility function of the proposer with the FS model is given by Up = p-3(p-(10-p)). Explain why the proposer's utility function omits the a in equation 2. How much would the proposer give if 3= 1? Hint: Note that the p is what the proposer keeps for himself. Check his marginal utility to determine whether he should keep more or less for himself. (1) 1. The utility function for the FS model is given below. (6 points) 1 1 U = Ti-am7 (u; ui) Bm; (U. (u; - uz) (1) n- 1 n- jEH, jeLi a) How does the FS model differ from the ERC model? Explain the meaning of parameters a and B. (2) b) Assume that there are only 2 individuals, i and j. Draw a graphical representation of i's utility in the FS model where i has a set amount of income x and the income of the other individual j varies. Show individual i's utility on the y axis and the income of individual a on the x-axis. (2) c) Fehr and Schmidt make the assumption that a > 3, explain the rea- soning behind this assumption. (1) d) Go back to the dictator game in question 1. The utility function of the proposer with the FS model is given by Up = p-3(p-(10-p)). Explain why the proposer's utility function omits the a in equation 2. How much would the proposer give if 3= 1? Hint: Note that the p is what the proposer keeps for himself. Check his marginal utility to determine whether he should keep more or less for himself. (1)