Carlos and Darla Are Representative Individuals Playing the Dictator Game

question 175

Multiple Choice

Carlos and Darla are representative individuals playing the dictator game. Carlos is assigned the role of dictator and given $20 to split between the two of them. Based on previous experiments with this game by behavioral economists, about a third of the time we would expect

• A)Carlos to keep all of the money for himself.
• B)Carlos to give all of the money to Darla.
• C)Carlos to split the money evenly with Darla.
• D)Carlos to split the money, keeping a little more than half for himself.

---

Definitions:

Lorenz Curve

A graphical representation of income or wealth distribution within a society, showing the proportion of overall income earned by cumulative percentages of the population.

Income Inequality

The imbalanced dispersion of income across various economic participants, including individuals and households.

Lorenz Curve

An illustrated chart that maps out the distribution of wealth or income among individuals in a society, revealing disparities.

Income Inequality

The unequal distribution of income among members of a society.