Consider equation 15.2. If $\beta=0$, how does the dictator's optimal choice of $x$ depend on the value of $\alpha$ ?

Question

Quizplus · Accepted Answer

With $\beta=0$, the dictator's optimal choice of $x$ is determined solely by the value of $\alpha$. If $\alpha=0$, there's no penalty for choosing a larger $x$, hence $x=10$. If $\alpha>0$, the dictator incurs a cost for larger values of $x$, leading to a more conservative choice of $x=5$.

Consider Equation 15 β=0\beta=0β=0 , How Does the Dictator's Optimal Choice Of

Consider Equation 15 $\beta=0$ , How Does the Dictator's Optimal Choice Of