In a dictator game,player A must divide $100 between player A and player B.In this game,player B does not have the opportunity to reject an offer - they go home with whatever player A offers.Experiments have observed that when player A splits the $100,he or she consistently offers over $10 to player B.Which of the following comments fits best.
A) Although player A is acting as economic theory usually assumes,he or she makes such offers because they seem more fair.
B) Although player A is acting as economic theory usually assumes,he or she makes such offers although they are not fair.
C) Although player A is not acting as economic theory usually assumes,he or she makes such offers because they seem more fair.
D) Although player A is not acting as economic theory usually assumes,he or she makes such offers because they are not fair.

Question

Quizplus · Accepted Answer

Economic theory usually assumes that people act based on their own self-interest and would keep all of the $100 for themselves. However, in the dictator game experiment, player A consistently offers more than $10 to player B, which goes against economic theory. This suggests that player A is motivated by fairness or social norms rather than self-interest. Therefore, choice C is the best answer as it acknowledges that player A is not conforming to economic theory, but is still making offers that are perceived as more fair.

In a Dictator Game,player a Must Divide $100 Between Player