Question: Think about a trust game in which the trustor starts out with $10, and an investment yields $3 for each dollar invested. Let's use F

Think about a trust game in which the trustor starts out with $10, and an investment yields $3 for each dollar invested. Let's use F to stand for the absolute value of the difference between the two players' payoffs, as in Problems 8 and 9. Suppose the trustor is selfish and cares only about his own dollar payoff. The trustee, however, cares about fairness-she ranks the outcomes according to the value R - 2F, where R is her dollar payoff. What will the trustee do if the trustor invests $2, $4, $6, $8, or $10? What is the trustor's payoff in each case? What is the trustor's best choice? How would your answer change if the investment yielded $1.50 for each dollar invested?

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