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srn347 comments on Econ/Game theory question - Less Wrong Discussion

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

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Comment author: [deleted] 29 December 2012 11:44:56PM 0 points [-]

I think it resolves as follows: If A can precommit more strongly than B can (and show than he can), the agreed upon price will $10. If B can precommit more strongly than A can (and show that he can), the agreed upon price will be $500,000. If they're sufficiently equal in mental ability to precommit (or neither can credibly show they've precommitted), the agreed upon price will be either $250,005 (if they're superrational) or nonexistent. Has homo economus developed the ability to precommit?