this is psychology and economics problem set

1. Anton and Klara must decide whether to be nice to each other. Klara has been given $5, and can decide whether to keep these $5 for herself or sacrice the money for Anton. If she sacrices the $5, Anton gets $10. Similarly, Anton has been given $5, and if he sacrices his $5, Klara gets $10. However, Klara does not know Anton's choices, believing that Anton has no choices to make and cannot get money unless she sacrices for him. Anton is selsh: he wants to maximize the amount of money he receives from the interaction. Accordingly, he has decided to keep the $5 for himself. Note: Answer the following questions precisely by explicitly referring to the preference models where ever appropriate. (a) (10 points) Suppose Klara has distributional social preferences, and no other types of social preferences (and Anton knows this). 1. Does Anton want Klara to know that he is receiving the $5 (without her knowing that he had a choice), does he not want her to know, or is he indifferent? ii. Supposing that Klara is told about the $5, does Anton want Klara to know about the choice he had, does he not want her to know, or is he indifferent? (b) (10 points) Suppose Klara has intentions-based social preferences, and no other types of social preferences (and Anton knows this). i. Does Anton want Klara to know that he is receiving the $5 (without her knowing that he had a choice), does he not want her to know, or is he indifferent? ii. Supposing that Klara is told about the $5, does Anton want Klara to know about the choice he had, does he not want her to know, or is he indifferent? (c) (10 points) Now suppose Anton has face-saving concerns (in addition to his money maximizing preferences), and no other types of social preferences. i. Does Anton want Klara to know that he is receiving the $5 (without her knowing that he had a choice), does he not want her to know, or is he indifferent? ii. Supposing that Klara is told about the $5, does Anton want Klara to know about the choice he had, does he not want her to know, or is he indifferent