The question is as follows

Let x be the amount of money subject 1 receives and y be the amount of money subject 2 receives. Subject 1 may have \"standard\" preferences (denoted by .3), dened as \"x, a) = :v. or Fehr-Schmidt preferences (denoted by F8), dened as \"fax: a) = 33 0493 ylv where Ia: yl denotes the absolute value of (a: y) and o: > 0. That is, the utility of subject 1 with F3 preferences depends on both subject 1's money a: as well as subject 2's money y. You are asked to design an experiment that would determine whether subject 1 has 8 or F3 preferences. In your design, you need to nd two bundles ($1,111) >> 0 and ($2,312) >> 0 such that subject 1 with Spreferences would necessarily choose ($1,911), while subject 1 with FS-preferences would necessarily choose (m2, 342). (a) Find two such bundles, or explain why it is impossible. (b) Suppose that the denition of Fehr-Schmidt preferences also imposes the condition that o: 6 [001,1]. Find two bundles (x1, y1) and (3:2, 3;?) that distinguish between S- and FS-preferences as described above or explain why it is impossible