Standard Game Theory Predicts a Solution to the Ultimatum Game

question 166

Multiple Choice

Standard game theory predicts a solution to the ultimatum game that is rarely observed when people actually play the game. The key reason that behavioral economists believe the predicted and observed outcomes differ is because people account for ________ of the outcome when making decisions.

• A) loss aversion
• B) fairness
• C) efficiency
• D) utility

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Definitions:

Complete Lack

The total absence of a certain element, quality, or substance.

Executive Function

Higher-order, complex cognitive processes, including thinking, planning, and problem solving.

Subconscious Awareness

Mental processes carrying out below the level of conscious thought, influencing feelings, actions, and thoughts unknowingly.

Controlled Processes

Mental activities requiring focused attention that generally interfere with the ability to conduct other processes simultaneously.