Bargaining over bets

Abstract

When two agents hold different priors over an unverifiable state of nature, which affects the outcome of a game they are about to play, they have an incentive to bet on the game’s outcome. We pose the following question: what are the limits to the agents’ ability to realize gains from such speculative bets when their priors are private information? We apply… (More)
DOI: 10.1016/j.geb.2008.06.001

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Cite this paper

@article{Eliaz2009BargainingOB, title={Bargaining over bets}, author={Kfir Eliaz and Ran Spiegler}, journal={Games and Economic Behavior}, year={2009}, volume={66}, pages={78-97} }