Bundle: Principles of Microeconomics, Loose-Leaf Version, 7th + Aplia, 1 term Printed Access Card
7th Edition
ISBN: 9781305135444
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Question
Chapter 22, Problem 6CQQ
To determine
The ultimatum game and if people care on fairness.
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Economics
Consider the ultimatum and dictator games.
a) Briefly explain the general experimental findings
about how individuals play these games. How do
they compare with the game theoretic
predictions?
b) How do social preferences explain behavior in
these experiments?
c) Real world experiences have an impact on
experimental behavior. Explain how real world
experiences could affect behavior in each of
theses experiments.
d) Suppose that you would like to increase the
amount that is sent in these experiments. Can you
think of a way to to this?
e) Suppose that individuals play first a dictator
game and then an ultimatum game with the roles
reversed, i.e. the sender in the dictator game is the
receiver in the ultimatum game. Given what you
know about individuals' behavior, how do
think that players will play? Explain.
you
Suppose Justine and Sarah are playing the ultimatum game. Justine is the proposer, has $140 to allocate, and Sarah can accept or reject the offer. Based on repeated experiments of the ultimatum game, what combination of payouts to Justine and Sarah is most likely to occur?.
Craig Palsson, an assistant professor at Utah State University in the school of business, attempted to watch Avengers: Endgame five times consecutively but failed . What economic concept does this demonstrate? A. Sunk costs. B. Incentives. C. Diminish utility. D. Tradeoffs.
Chapter 22 Solutions
Bundle: Principles of Microeconomics, Loose-Leaf Version, 7th + Aplia, 1 term Printed Access Card
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- Q2. The Prisoners' Dilemma: Jill Confess Remain Silent Confess Bob: 8 years Jill: 8 years Bob: Free Jill: 20 years Bob Remain Silent Bob: 20 years Jill: Free Bob: 1 year Jill: 1 year 2A: Find Nash equilibrium? 28. Is the Nash equilibrium best outcome for them? 2C. If your answer of Q2 is 'No', then why they choose an outcome which is not best for them.arrow_forwardWhich of the following is NOT one of the four steps for making good strategic decisions? A. Assume that others will defer to your action. B. Think about the “what ifs” separately. C. Play your best response. D. Consider all the possible outcomes.arrow_forwardYou have just played rock, paper, scissors with your friend. You chose scissors and he chose paper, so you won. Is this a Nash equilibrium? Explain why or why not.arrow_forward
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- help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all workingarrow_forwardSam and Sarah are thinking about getting married. However if either of them cheats on the other, they would get a payoff of 10, while the other person gets zero. If neither cheat, they stay with each other and get a payoff of 7 each and if both cheat, the relationship falls apart and each get a payoff of 1. What is the Nash equilibrium of this game? a. Cheat, Cheat b. Not cheat, Not cheat Sam cheats, Sarah doesn't Sarah cheats, Sam doesn'tarrow_forwardThe outcome of a prisoners' dilemma game with a Nash equilibrium is that Question 20 options: both players confess. both players deny. there is no equilibrium. one player denies and one player confesses.arrow_forward
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