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Consider a dictator game where player 1 divides $10 between himself and player 2

ID: 1210359 • Letter: C

Question

Consider a dictator game where player 1 divides $10 between himself and player 2 who has to accept the division. Which statement is true? If 1 is selfish he may give away some money. If 1 is motivated by reciprocity he may give away some money. If 1 is motivated by reciprocity he may give away $10. If 1 is guilt averse he may give away some money. If 1 is motivated by anger-of-blaming-behavior (as in Battigalli, Dufwenberg & Smith 2015) he may give away $10. Two players take turns making choices. To start off, player 1 can choose either 1 or 2. Player; observes this choice, then increments the 'count' by adding one or two. That is, if player chooses 1 then player 2 can follow up with 2 or 3; if player 1 chooses 2 then player 2 can follows

Explanation / Answer

B. If 1 is motivated by reciprocity he may gie away some money.

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