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The following matrix shows different monetary allocations made in the Ultimatum Game to different recipients whose a and B values are provided below. Each column
The following matrix shows different monetary allocations made in the Ultimatum Game to different recipients whose a and B values are provided below. Each column (with empty cells below) represents a monetary allocation where x, and x, represent the payoffs of the recipient and the proposer, respectively (the first value in the first row is what the recipients, whose info is given in the rows, are getting). Fill out each cell with the utility of the corresponding monetary allocation for the recipient on that row (in dollar and cents) and IF the recipient has a preference between accepting or rejecting the offer, indicate that using "A" and "R", respectively. (12 pt) Also, write the equation(s) you used under the table. [1 pt] Recipient # xr: $7; x: $3 X,: $6; xp: $4 x,: $4; Xp: $6 x,: $3; Xp: $7 a=4; =0.60 2 a=3; B=0.60 3 a=2; B=0.75 4 a=2; B=0.85 a) Compare the utility of x: $4; x,: $6 for Recipient 1 and Recipient 2. Does the utility change? Why? Explain in relation to the role of a and/or B parameters. [2pts]
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