Deck 8: Fairness and Ethics in Decision Making

Question 1

What is important to remember when formulating a fair offer in an interpersonal context?

Answer 1

that other people have different standards about what is fair.

Question 2

How was the effect of fairness considerations demonstrated in the dictator game?

Answer 2

In the dictator game,an offer made is automatically accepted.Nevertheless,most players still choose to give the other party some portion of the resources.

Question 3

Spontaneous behaviors are better predicted by implicit attitudes,while thoughtful behaviors are better predicted by explicit attitudes.

Answer 3

True

Question 4

Researchers of bounded ethicality claim that the primary flaw of most ethical training is that:

A)It ignores the failure of disclosure to reduce conflicts of interest.
B)It fails to convince managers that they can benefit from lessons of ethical behavior.
C)It over-claims credit for its contribution to reduce unethical behavior.
D)It focuses too narrowly on explicitly unethical behavior.

Question 5

Which bias underlies the tendency of people to overclaim credit for their contribution to an outcome?

A)The affect heuristic
B)Time discounting
C)Self-serving attributions
D)None of the above

Question 6

The basic psychological process underlying in-group favoritism is that we tend to identify with people who are ___________ to us.

Question 7

People display inconsistency by:

A)Preferring a nominal wage increase that does not cover inflation over a wage cut.
B)Punishing retailers that raise prices in response to demand.
C)Giving some money to the other party in ultimatum and dictator games.
D)Willingness to pay for punishment of unfair players.

Question 8

Businesses that adjust their prices upward in response to high demand,consistent with economic laws of supply and demand,can experience which of the following outcomes:

A)Underperform other businesses that consider the norms of fairness.
B)Are punished by customers who are more sensitive to fairness than to economic rationality.
C)Make larger profit than businesses that comply with norms of fairness.
D)All of the above

Question 9

Research has shown that suppressing stereotypes against out-group members causes:

A)A gradual reduction in the strength of stereotypes.
B)A temporary reduction in cognitive capacity and a feeling of discomfort.
C)A transition in the nature of the suppressed stereotypes,such that they become implicit.
D)An increase in people's sensitivity to aggressive and violent behavior.

Question 10

Which of the following condition can increase one's willingness to engage in altruistic punishment?

A)When the person who is behaving unfairly belongs to an in-group.
B)When the person who is behaving unfairly belongs to an out-group.
C)When the person who is treated unfairly belongs to an out-group.
D)When the person who is treated unfairly belongs to an in-group.

Question 11

Disclosure of conflicts of interest can increase biases stemming from these conflicts.

Question 12

What is altruistic about altruistic punishment?

Question 13

Bounded ethicality has replaced the assumption of conscious choice as the best explanation for unethical behavior.

Question 14

Which of the following helps to eliminate the influence of fairness considerations?

A)Repeating games
B)Raising the stakes in games
C)Reducing the amount of available resources after an initial offer is rejected
D)None of the above

Question 15

Which false assumption is often made by professionals such as lawyers,financial advisers and real-estate agents regarding potential conflicts of interest?

A)That situations in which they are involved do not pose conflicts of interest.
B)That they themselves are immune from the effects of conflicts of interest.
C)That they are honest and objective people.
D)That conflicts of interest lead only to unconscious corruption.

Question 16

How do the want and should selves interact in the decision whether to punish someone who is behaving unfairly?

Question 17

Research on the psychology of conflicts of interest suggests that an auditor is psychologically incapable of maintaining a truly unbiased judgment as long as:

A)The auditor depends on its clients for future contracts.
B)The auditor is forced to disclose conflicts of interest.
C)The auditor is believed to personally be immune to conflicts of interest.
D)All of the above.

Question 18

Research has found that reducing the gap between the salaries of a team's highest-paid and lowest-paid members can have a _________ effect on the team's performance.

Question 19

Moral issues produce ______________ reactions that,in turn,often drive our cognitive assessments.

Question 20

Fairness appears to be a universal concept,but its implementation depends on _______ norms.

Question 21

When people are doing favors for their friends,what aspect of their unfair behavior do they often overlook?

Question 22

What is the money illusion,and how does it affect people's judgment?