Economists have used ________ and ________ in experiments designed to determine whether consumers care about fairness when they make decisions.
A)Giffen goods; luxury goods
B)the income effect; the substitution effect
C)the ultimatum game; the dictator game
D)network externalities; the endowment effect

Question

Quizplus · Accepted Answer

The ultimatum game and the dictator game are experimental games used by economists to study how people make decisions based on fairness. In the ultimatum game, one person proposes how to divide a sum of money with another person, who can either accept or reject the proposal. If the proposal is rejected, both parties receive nothing. In the dictator game, one person is given a sum of money and decides how to divide it with another person, who has no say in the matter. These games help economists understand whether people have a preference for fairness in decision-making.

Economists Have Used ________ and ________ in Experiments Designed to Determine

Economists Have Used and in Experiments Designed to Determine