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bentarm comments on Econ/Game theory question - Less Wrong Discussion

12 Post author: Psychohistorian 11 May 2011 08:17PM

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Comment author: bentarm 11 May 2011 10:17:55PM 2 points [-]

The problem is that if A is perfectly rational, in a sense, he can't make a credible take it or leave it offer

Of course he can - he signs an enforceable contract to pay C $500,001 in the case that he is ever seen to be offering B more than $8191 for the land, and has done with it.

Comment author: Psychohistorian 12 May 2011 02:41:21AM 1 point [-]

...but when he signs this contract, he may find out that B signed a contract refusing to accept anything less than $450,000 for the land, or else pay some large some to D. If there's any lag in communication between the two of them, this is an extremely risky strategy.

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