Thanks Anthony for an elegant and thoughtful approach to bargaining strategies. My only worry is that there’s so much evidence that we humans are incapable of rational behavior and will reliably self-harm under certain scenarios even when the better outcome path is blindingly obvious. This seems to be because we’re hardwired by evolution to compare our position to that of our peers. Hence we get the classic problem: A can choose between 2 options, (a) that will give A $2 and give B $1, or (b) that will give A $10 and give B $20. Rationally A should choose option (b) but in real life almost everyone chooses option (a) because it gives them comparatively more than B. Emotions dominate bargaining sessions which is why sub-optimal outcomes are the general result. We’re not very good at thinking & reasoning but we’re very good at responding to emotional triggers with hardwired reactions.

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