In the racing companies example, there is no coercion involved, but the imperfect information element still allows for a positive-sum-with-losers outcome.
before the result is known, both companies have positive expected value. if you are risk averse and prefer to immediately cash out instead of taking the gamble, someone out there will be willing to buy out your share of one of the companies for a small fee.
In the racing companies example, there is no coercion involved, but the imperfect information element still allows for a positive-sum-with-losers outcome.
before the result is known, both companies have positive expected value. if you are risk averse and prefer to immediately cash out instead of taking the gamble, someone out there will be willing to buy out your share of one of the companies for a small fee.