Strength of the Reciprocity Motive (R)

Responder's Decision Rule with Reciprocal Preferences

Minimum Acceptable Offer with Reciprocal Preferences

In a scenario where two individuals must divide $100, a widely accepted social norm suggests a 50-50 split ($50 each). A model of behavior suggests that if one person (the Responder) receives an offer they feel is unfair, their satisfaction from rejecting that offer—and thus punishing the other person—is greater for offers that deviate more from the social norm. Based on this model, which of the following statements is the most accurate comparison of a Responder's potential satisfaction from rejecting different offers?

Analyzing a Responder's Choice

Explaining Rejection Satisfaction

In a model where a Responder's satisfaction from rejecting an offer is inversely proportional to how much the offer falls below a social norm, a Responder would derive a small, but positive, amount of satisfaction from rejecting an offer that is exactly equal to the social norm (e.g., a $50 offer in a $100 split).

A model of reciprocal behavior proposes that the satisfaction a person (a 'Responder') gets from rejecting an unfair monetary offer is inversely related to the size of the offer, relative to a social norm. Consider a situation where two people are to split $100, and the social norm is an equal $50-$50 split. Arrange the following offers the Responder could receive based on the amount of satisfaction they would get from rejecting each one. The offer yielding the highest rejection satisfaction should be first.

In a scenario where two individuals are tasked with splitting $100, the generally accepted social norm is a 50-50 split ($50 each). A behavioral economic model suggests that the satisfaction a Responder derives from rejecting an offer is inversely proportional to how much the offer is below the social norm. Match each offer made to the Responder with the corresponding level of satisfaction they would gain from rejecting it, based on this model.

Analyzing the Model of Reciprocity

In a behavioral model that accounts for a person's reaction to perceived unfairness, the satisfaction gained from rejecting a monetary offer that falls below a social norm is ______ related to the size of that offer.

Evaluating the Model of Reciprocal Motives

Comparing Reciprocal Reactions

Responder's Decision Rule with Reciprocal Preferences

Responder's Punitive Reaction to Offers Breaching Social Norms

In a one-shot game where a 'Proposer' is given $100 and must offer a portion to a 'Responder', who can either accept or reject the offer (if rejected, neither player gets anything), experimental results consistently show two things: 1) Proposers most frequently offer between $40 and $50. 2) Responders often reject offers below $20. What is the most logical conclusion to draw from this evidence about the players' motivations?

Predicting Offers Based on Social Context

Evaluating the Homo economicus Model in the Ultimatum Game

In a one-shot ultimatum game where a Proposer is given $10 to split, a Proposer behaving as a purely self-interested actor (Homo economicus) would offer the Responder $5, as this is the fairest split and most likely to be accepted.

Explaining Proposer Behavior in the Ultimatum Game

In a one-shot game, a 'Proposer' is given a sum of money and must offer a portion to a 'Responder'. The Responder can either accept the offer (in which case they both get the agreed-upon split) or reject it (in which case both players get nothing). Match each player's motivation to their most likely action in this game.

A 'Proposer' in a one-shot game is given $100 to split with a 'Responder'. The Proposer knows that the Responder can reject the offer, in which case both players receive nothing. The Proposer is not a purely self-interested actor and considers social factors. Arrange the following steps to reflect the Proposer's most likely logical thought process when deciding on an offer.

In a one-shot game where a 'Proposer' offers a split of a sum of money to a 'Responder', experimental results show that Proposers often offer a significant portion (e.g., 40-50%) of the total sum. This behavior, which deviates from the prediction for a purely self-interested actor, indicates that the Proposer's decision is heavily influenced by their perception of social ____.

Analyzing Proposer Behavior Across Different Social Contexts

In a one-shot game, a 'Proposer' is given $10 to split with a 'Responder'. If the Responder rejects the offer, both players receive $0. A purely self-interested Proposer would offer the smallest possible positive amount (e.g., $1), assuming the Responder would accept any gain over nothing. However, in real experiments, Proposers often offer a much larger share, such as $4. Which of the following statements best analyzes the Proposer's strategic thinking behind offering $4 instead of $1?