Asked by Abena Opoku on May 17, 2024
Verified
Which of the following best describes the relationship between market transactions and the ultimatum and dictator games?
A) Market transactions operate more like the ultimatum game than the dictator game.
B) Market transactions operate more like the dictator game than the ultimatum game.
C) The ultimatum and dictator games both provide good representations of how market transactions work.
D) Neither the ultimatum game nor the dictator game bears much similarity to market transactions.
Market Transactions
The processes involved in buying or selling goods and services in a market between buyers and sellers.
Ultimatum Game
A game in experimental economics in which two players decide on how to divide a sum of money; one player proposes a division, and the other can accept or reject it.
Dictator Game
An experimental game in economics where one player (the "dictator") determines how to split an endowment between themselves and another player.
- Realize the importance of setting and psychological motivations in the dynamics of economic dealings and selections.
Verified Answer
Learning Objectives
- Realize the importance of setting and psychological motivations in the dynamics of economic dealings and selections.
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