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Clear solutions please roblem 4 a) Describe the basic setup of the dictator game. (2 points) b) The diagram below shows the distribution of the

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Clear solutions please

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roblem 4 a) Describe the basic setup of the dictator game. (2 points) b) The diagram below shows the distribution of the amounts kept by the dictators in a dictator game experiment (e.g., 42 dictators kept 10 euros for themselves). In this experiment, the dictators were initially endowed with 10 euros and the receivers' endowment was 0. Describe which behavioral models can explain the distribution. (6 points) Distribution of amount kept by dictators 45 42 40 35 30 25 20 15 10 3til: 4 5 0 l 0 i 0 i 4 2 1 0 c) Esther takes part in the dictator game described in problem b). Suppose that her utility function is 11.5 = JE + am, where x5 denotes her own payoff and sun is the receiver's payoff. Furthermore, 6

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