For each of the following statements, say whether they are True or False, and give a brief ezplanation. (a) If you observe that a dictator in a standard dictator game chooses to give all of his endowment to the receiver, you can conclude that he (the dictator) must be inequality averse. (b) If you observe that a trustor in a standard trust game (Berg et al, 1995) chooses to send none of her endowment to the trustee, you can conclude that she (the trustor) thinks the trustee will send back zero.
For each of the following statements, say whether they are True or False, and give a brief ezplanation. (a) If you observe that a dictator in a standard dictator game chooses to give all of his endowment to the receiver, you can conclude that he (the dictator) must be inequality averse. (b) If you observe that a trustor in a standard trust game (Berg et al, 1995) chooses to send none of her endowment to the trustee, you can conclude that she (the trustor) thinks the trustee will send back zero.
Chapter9: Specialized Trusts
Section: Chapter Questions
Problem 4RQ
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Transcribed Image Text:For each of the following statements, say whether they are True or False, and give a brief explanation.
(a) If you observe that a dictator in a standard dictator game chooses to give all of his endowment to the
receiver, you can conclude that he (the dictator) must be inequality averse.
(b) If you observe that a trustor in a standard trust game (Berg et al, 1995) chooses to send none of her
endowment to the trustee, you can conclude that she (the trustor) thinks the trustee will send back
zero.
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