In their original study, Berg et al. start the game by giving the same endowment to both the first movers and the second movers. The reason they do this is because:
A) It would be unethical not to do so.
B) If the second mover did not have the same endowment and the first mover transferred money to the second mover, we would not be able to distinguish whether this was due to trust or due to inequity aversion.
C) If the second mover did not have the same endowment and the first mover transferred money to the second mover, we would not be able to distinguish whether this was due to inequity aversion or the fear of rejection.
D) Berg et al. wanted both participants to have the same bargaining power.

Question

Quizplus · Accepted Answer

The reason for giving both the first movers and the second movers the same endowment in Berg et al.'s original study is to ensure that if the first mover transfers money to the second mover, the motivation can be attributed to trust rather than inequity aversion. This setup helps in isolating trust as a variable by eliminating the confounding factor of inequity aversion, which could also motivate transfers.

In Their Original Study, Berg Et Al