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:

Cognition

The intellectual activity that involves obtaining knowledge and insight via reasoning, undergoing experiences, and sensory perception.

Empiricism

A philosophy of knowledge that emphasizes the role of experience and evidence through the senses in the formation of ideas, over the notion of innate ideas or traditions.

Acquiring Knowledge

Acquiring knowledge involves the process of learning, understanding, and making sense of information, which can occur through experiences, education, or observation.

Clinical Psychologist

A professional specializing in diagnosing and treating mental, emotional, and behavioral disorders through therapy.