Nash Equilibria Can Be Used to Make Predictions About Human

question 4

Multiple Choice

Nash equilibria can be used to make predictions about human behavior in noncooperative games.Behavioral game theory studies actual human interaction, and has found inconsistencies between observed human behavior and Nash-predicted behavior.Which of the following is NOT an inconsistency pointed out by behavioral economists?

• A)In ultimatum games, proposers should always offer to give responders the minimum possible split, regardless of whether it is perceived as "unfair" or not.
• B)In ultimatum games, offers perceived as "unfair" are frequently rejected.
• C)In ultimatum games, responders are less likely to turn down "unfair" offers if the dollar amount is large.
• D)Third party observers of ultimatum games will frequently punish what they perceive as "unfair" divisions, even at a cost to themselves.
• E)In ultimatum games, men tend to receive more favorable divisions, particularly when divisions are proposed by women.

---

Definitions:

Dissolved Gas

A gas that has been absorbed into a liquid solution, such as carbon dioxide in water, often influencing chemical reactions and physical properties.

Andesite

A volcanic rock type that is intermediate in composition between basalt and rhyolite, often found in volcanic arcs associated with convergent tectonic boundaries.

Alpha Decay

The radioactive decay process in which an unstable atom fissions, releasing a positively charged particle with two protons and two neutrons.

Radioactive Decay

The method through which an unstable atomic nucleus releases energy through the emission of radiation.