Question
3.In the economics experiment called the dictator game half of a group (dictators) are given a fixed sum of money (say 10) and asked how
3.In the economics experiment called the "dictator game" half of a group ("dictators") are given a fixed sum of money (say 10) and asked how they would like to share it with an anonymous stranger ("receivers") who have not been given any money.
Each "dictator" is anonymously paired with a "receiver".
"Dictators" are aware that "receivers" have received nothing, and "receivers" are aware that "dictators" have received 10 and must decide how much to give them.
a)Why would the rational economic agent give nothing?
b)Why do we find that people often offer part of the 10 to an anonymous stranger? Which emotions are at play here?
c)How might a "dictator" behavior change if they knew that the "receiver" would see a picture of them after the amount to be transferred had been decided by the
"dictator"? Why?
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