Economists Have Used the Ultimatum Game and the Dictator Game

question 279

Multiple Choice

Economists have used the ultimatum game and the dictator game in experiments designed to determine

• A)whether consumers care about fairness when they make decisions.
• B)whether consumers believe it is fair for producers to raise the price of a product for which there is excess demand.
• C)whether consumers understand the difference between implicit costs and explicit costs.
• D)whether consumers understand the rule of equal marginal utility per dollar spent.

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Definitions:

Mediators

Neutral individuals or parties that facilitate negotiation and conflict resolution between disputing parties without making a binding decision.

Communication Process

The method by which information is transferred from one person or group to another, encompassing several elements including sender, message, medium, receiver, and feedback.

Specialized Form

Specialized form refers to a distinct variation or adaptation of something that is designed for a specific purpose or function.

Binding Arbitration

A legal process in which a dispute is resolved by an arbitrator, with the decision being final and enforceable by law.