lecture 4 Flashcards
1
Q
what does traditional economics assume?
A
individuals act with narrow self interest to maximise their own utility
2
Q
what illustrates that people act beyond pure self interest?
A
paying taxes, donating and tipping
3
Q
what kind of experiment was mentioned in the manditory article?
A
Based on dictator game where one needs to distribute money to another. Based on belief what is fair to keep and give away
4
Q
what is the issue with dictator games?
A
cannot eliminate external factors fully like shame
