Suppose Faith and Mickey Are Playing Both Dictator and Ultimatum

question 174

Multiple Choice

Suppose Faith and Mickey are playing both dictator and ultimatum games. Faith is the dictator/proposer and has $1,000 to allocate. Based on repeated experiments of the dictator and ultimatum games, what payouts to Faith would be most consistent with the findings of behavioral economists?

• A)Faith receives $1,000 from the dictator game and $1,000 from the ultimatum game.
• B)Faith receives $500 from the dictator game and $420 from the ultimatum game.
• C)Faith receives $500 from the dictator game and $500 from the ultimatum game.
• D)Faith receives $580 from the dictator game and $540 from the ultimatum game.

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Definitions:

MC

An abbreviation for Marginal Cost, referring to the expense associated with producing an additional unit of output.

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The maximum output that a business, plant, or facility can produce under normal conditions.

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The fees charged for the use of a parking space, often varying by location, time, and duration.