Asked by Abena Opoku on May 17, 2024

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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.
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AF
Aimee FloresMay 23, 2024
Final Answer :
A
Explanation :
Market transactions are more akin to the ultimatum game because both involve a negotiation process where both parties must agree on the terms of exchange for it to proceed, reflecting the bargaining and mutual consent found in market transactions.