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Scenario I The Following Scenario Describes Research Findings Discussed in the Following

question 13

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Scenario I
The following scenario describes research findings discussed in the following review article:
Cameron, C. C. & Thaler, R. H. (1995) . Anomalies: Ultimatums, dictators, and manners. Journal of Economic Perspectives, 9(19) , 209-219.
In the ultimatum game, two participants are assigned to be either the "Divider" or the "Decider" by a coin flip. The Divider is given a sum of money, such as $10, and is instructed to offer some non-zero portion of it to the Decider. If the Decider accepts, she gets to keep what was offered and the Divider keeps the rest. If the Decider rejects the deal, both players get nothing. Both players are made aware of all of these rules and then the game begins. Under these conditions, Dividers usually offer a little less than $5 and Deciders usually accept this amount. If Dividers offer less, Deciders often reject and both players get nothing. A similar game is termed the dictator game. Players are randomly assigned to be either the "Allocator" or the "Receiver." The Allocator is given a sum of money and makes a decision about how much money she would like to give the Receiver, who must accept this result. Allocators in this game usually offer some money to the Receiver, but typically less than the Dividers in the ultimatum game.
-(Scenario I) In the ultimatum game, the decision to reject an offer has been interpreted differently. One explanation is that Deciders seek, on principle alone, to exact retribution on Dividers who offer unfair deals. Another explanation is that rejecting unfair offers is part of a strategy to help ensure more fair deals in the future. Which is the best way to evaluate these two explanations?


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