In the trust game, where amounts send by Senders is tripled before reaching Receivers, in order for a trusting action to increase payoff over and above the initial endowment for the trustors:
A) trustees must return more than one-third or of the amount received.
B) trustors should never send any money.
C) trustees should never return any money.
D) trustors should keep their initial endowment.

Question

Quizplus · Accepted Answer

In the trust game, when the amount sent by the trustor (Sender) is tripled before reaching the trustee (Receiver), for the trustor to increase their payoff over their initial endowment, the trustee must return more than one-third of the amount received. This is because the amount is tripled, so returning more than one-third ensures that the trustor receives more than their original amount.

In the Trust Game, Where Amounts Send by Senders Is