Can you show how a repeated version of this game results in overall better deals for the company? I agree this can happen, but I disagree for this particular circumstance.
In the pie example, the obvious answer is that giving the other person only 10% of the pie prevents them from gaining the security to walk away next time I present the same offer.
Can you show how a repeated version of this game results in overall better deals for the company? I agree this can happen, but I disagree for this particular circumstance.
In the pie example, the obvious answer is that giving the other person only 10% of the pie prevents them from gaining the security to walk away next time I present the same offer.
I admit I don’t have a good answer for that.
(I suspect there may be something important in real life that is missing from this model.)