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The homo economic view of men's behaviour applied to the bulk of finance theory portray decision makers and being both sferested and motion Neoclassical sconomies makes some fundamentalumptions about people 1. People have ratione preferences or possible outcomes or states of nature 2. People maximize utility and firms marimize profits. 3. People make independent decisions bewed on all relevant information In light of the following hypothetical experiments, discuss the above Experiment 1: Ten people are in Room X (givers) with a further ten people in Room Yakers). Each giver in Room X will be paired with a taker in Room Y although they will not know the identity of the other Givers have been given $20 und can transfer my part of their $20 to taker in Room Y. Takes can either choose to keep the amount sent, in which case the amount proposed is final or else reject the amount sent, in which case both individuals receive nothing. That is, you can send any dollar amount from 0 to $20 and the tanker can meet this offer, or reject it, in which case you both receive nothing. For example, if the taker accepts and you send S10, you keep 520 - $10 You are a giver How much do you give Experiment 2 Ten people are in Room X (givers) with a further ten people in Room Yakers). Fach giver Room X will be paired with a receiver in Room Yalthough they will not know the identity of the other. Givers in Room X have been given 520 and can transfer any part of their $20 to a taker in Room Y The taker cannot reject the amount You are a giver How much do you send For example. If you send 510, you keep $20-$10. Experiment Ten people are with other people are giver Received although the identity of the other neuve been given and can transfer the turned in Room were the the to the child the time The homo economic view of men's behaviour applied to the bulk of finance theory portray decision makers and being both sferested and motion Neoclassical sconomies makes some fundamentalumptions about people 1. People have ratione preferences or possible outcomes or states of nature 2. People maximize utility and firms marimize profits. 3. People make independent decisions bewed on all relevant information In light of the following hypothetical experiments, discuss the above Experiment 1: Ten people are in Room X (givers) with a further ten people in Room Yakers). Each giver in Room X will be paired with a taker in Room Y although they will not know the identity of the other Givers have been given $20 und can transfer my part of their $20 to taker in Room Y. Takes can either choose to keep the amount sent, in which case the amount proposed is final or else reject the amount sent, in which case both individuals receive nothing. That is, you can send any dollar amount from 0 to $20 and the tanker can meet this offer, or reject it, in which case you both receive nothing. For example, if the taker accepts and you send S10, you keep 520 - $10 You are a giver How much do you give Experiment 2 Ten people are in Room X (givers) with a further ten people in Room Yakers). Fach giver Room X will be paired with a receiver in Room Yalthough they will not know the identity of the other. Givers in Room X have been given 520 and can transfer any part of their $20 to a taker in Room Y The taker cannot reject the amount You are a giver How much do you send For example. If you send 510, you keep $20-$10. Experiment Ten people are with other people are giver Received although the identity of the other neuve been given and can transfer the turned in Room were the the to the child the time