Which of the following statements about the Trust Game is true?
A) It contains two players, a proposer and a responder.
B) It contains two players, an investor and a trustee.
C) It can only be played as a single round game (i.e. no chance of reciprocity)
D) The game is an analogy for taxation.

Question

Quizplus · Accepted Answer

The Trust Game contains two players, an investor and a trustee. The investor starts with a certain amount of money and decides how much of it to send to the trustee. The amount sent is multiplied by a factor, and then the trustee decides how much of the multiplied amount to return to the investor. The game can be played in multiple rounds, allowing for the possibility of reciprocity. It is often used as a model for studying cooperation and trust in social and economic situations. The game is not an analogy for taxation.

Which of the Following Statements About the Trust Game Is