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Larks comments on How should Eliezer and Nick's extra $20 be split - Less Wrong
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My intuition is #1, but a variant on #2 would be to use the geometric mean instead - so f = sqrt(pq). This has the desirable (but common) features that:
But unfortunately
The geometric mean gives 0 an advantage over 1, which makes it not symmetric in general. If we trust EY and NB the same, then f(p,1-q) should equal 1-f(q,1-p) (in both cases, one person thinks they get p of the dollar and the other thinks they get q.) Your variant of 2 does not satisfy this, which I think is the feature I think is the most important.