In experimental tests of the ultimatum game:
a. the proposer often offers an even split of the "pie", and responders often reject smaller offers, consistent with the predictions of game theory.
b. the proposer often offers an even split of the "pie", and responders often reject smaller offers, in contrast to the predictions of game theory.
c. the proposer often offers an unfair split, taking the lion's share of the "pie" for him or herself, and responders often accept such offers, consistent with the predictions of game theory.
d. the proposer often offers an unfair split, taking the lion's share of the "pie" for him or herself, and responders often accept such offers, in contrast to the predictions of game theory.
b
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According to this Application, three economists that studied data from the countries in the OECD found the value of the multiplier to be
A) 1.3. B) 2.3. C) 3.3. D) 4.3.
If the Fed buys government securities from the non-bank public, then
A) reserves at banks decrease. B) deposits at banks increase and banks' reserves increase. C) deposits at banks increase and banks' reserves decrease. D) loans at banks decrease. E) deposits at banks decrease and banks' reserves increase.
Define tax incidence
What will be an ideal response?
For a monopolistically competitive firm, marginal revenue
A) and price are unrelated. B) is less than the price. C) is greater than the price. D) equals the price.