In a study to examine altruistic behavior, an economics professor recruits college students to participate in a game. The game consists of teams of two, with one person acting as the proposer and the other, the responder. The proposer receives a sum of money and must decide how to split the money with the responder. If the responder approves of how the money was split, each person receives the determined amount. If the responder rejects the split, neither player receives any money. This study is an example of a:
A) Pigouvian conjecture.
B) lab experiment.
C) natural experiment.
D) path-dependent experiment.

Question

Quizplus · Accepted Answer

This study is an example of a lab experiment because it involves a controlled environment where participants are assigned specific roles and actions to examine their behavior, in this case, altruistic behavior.

In a Study to Examine Altruistic Behavior, an Economics Professor