The responder in an ultimatum game is likely to reject an offer of 10% of $1 but is less likely to reject an offer of 10% of $100. What is the reason behind such inconsistent behavior?
What will be an ideal response?
A responder in an ultimatum game rejects an offer made by the proposer if he prefers fairness to money. However, as the opportunity cost of exercising fairness increases, the responder is less likely to exercise fairness. Therefore, a responder who rejects an offer of 10% of $1 is less likely to reject an offer of 10% of $100.
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Economists believe that trade is necessary for prosperity because
a. every country lacks some vital resources that it can get only by trade. b. each country's climate makes it a relatively efficient producer of some goods, and an inefficient producer of other goods. c. specialization permits large outputs and can produce economies of scale. d. All of the above are correct.
You turn to the bond market page of a newspaper and look under the column headed "Net Chg" and see that it says, "-1/4" this indicates that
A) the closing price for the bond on this particular day was $2.50 lower than on the previous day. B) the closing price for the bond on this particular day is $0.25 lower than on the previous day. C) the yield for the bond has fallen by 0.25% compared to the previous day. D) the yield for the bond has fallen by 0.25% compared to exactly one year ago.
An increase in the value of the dollar will ___ agg demand
Fill in the blank(s) with the appropriate word(s).
The kinked demand theory attempts to explain why an oligopolistic firm:
A. has relatively large advertising expenditures. B. fails to invest in research and development. C. infrequently changes its price. D. engages in excessive brand proliferation.