Sarah and Claire are two sisters Their aunt gave 10 cookies to Sarah and asked her to share some with Claire She could choose how many she would give her
Sarah and Claire are two sisters. Their aunt gave 10 cookies to Sarah and asked her to share some with Claire. She could choose how many she would give her, but if Claire was not happy with her share, her aunt would take back all the cookies.
a)How should Sarah decide how many cookies to give Claire if Claire prefers more cookies to less cookies?
b)Will there be any change in her decision if she knows that Claire values fairness?
47) Neil and Derek are two brothers who are very fond of watching the television. They share a television but watch different shows. Every evening after coming home from school, they argue over who would watch the television and for how long. Irritated with their fight, their parents asked Neil to decide for how long each of them would watch the television. They also told him that if the brothers failed to reach an agreement, they would not let any of them watch it.
a)How should Neil make his decision?
b)What will be the outcome if Derek prefers fairness over watching television?
48) An economics professor has devised an interesting game to test the understanding of his students. He randomly selects two students from his class and gives a $50 bill to one of them. He then asks him what percentage of $50 he would give to his classmate. The first student can choose any percentage he wishes while the second student can choose whether or not to accept the offer. If the second student does not accept the offer, the professor will take the bill back but if he accepts the offer, the money will be divided in the ratio decided by the first student.
a)What is the likely outcome of this game if both the students value more money to less?
b)What is the likely outcome of this game if the second student values fairness?
49) One Sunday afternoon, your mother tells you and your brother that you can quickly make some money by helping her wash dishes. Both of you decide to help her. Once both of you are done with the work, your mother gives you a $20 bill. She also says that you can divide the money between yourself and your brother in any proportion you want, but if your brother does not accept the amount he is being given, she will take all of the money back.
a)How much money should you offer your brother if he prefers more money to less?
b)How much money should you offer to your brother if you know that your brother prefers fairness to money?