Asked by Keshawn Johnson on Jul 11, 2024

verifed

Verified

Which of the following is a key difference between the dictator game and the ultimatum game?

A) The dictator game is played with real money; the ultimatum game is played with hypothetical money.
B) In the dictator game, one person has total control over the split; in the ultimatum game, both players have to agree to the split.
C) Results of dictator game experiments reveal that people don't care about fairness; results of the ultimatum game indicate that they do care.
D) There is no difference between them; they are simply different names for the same game.

Dictator Game

A game used in experimental economics to study decision-making, where one player (the "dictator") determines how to split an endowment between themselves and another player.

Ultimatum Game

A game in economic experiments where two players decide how to divide a sum of money, with one proposing the split and the other accepting or rejecting it.

  • Characterize the qualities and effects of the dictator and ultimatum games in illustrating examples of human behavior.
verifed

Verified Answer

TB
Taylor BarnettJul 13, 2024
Final Answer :
B
Explanation :
In the dictator game, one player (the "dictator") decides how to split an amount of money with the other player, who has no say in the decision. In contrast, in the ultimatum game, one player proposes a split of a sum of money, but the other player must accept this proposal for both to receive the proposed shares. If the second player rejects the offer, neither player receives anything. This key difference highlights the element of agreement and rejection in the ultimatum game, which is absent in the dictator game.