The fair value input should be “what you expect to pay/get for this if this negotiation falls through”, right? To serve as a BATNA.
Hmm, why should it? I’m not seeing the connection.
The parties are trying to divide the gains from trade. To figure those out, we want to compare the world where the trade happens to the world where it doesn’t happen.
Sure, but what incentive do they have to input their true BATNA?
Are the probabilities that your tool calculates for whether each party accepts choosable to incentivize this?
I don’t see how they would be. If you do see a way, please share!
Yes, that is the crux of the issue. The BATNA is the theoretically correct answer, but hard to discover/elicit accurately.
The fair value input should be “what you expect to pay/get for this if this negotiation falls through”, right? To serve as a BATNA.
Hmm, why should it? I’m not seeing the connection.
The parties are trying to divide the gains from trade. To figure those out, we want to compare the world where the trade happens to the world where it doesn’t happen.
Sure, but what incentive do they have to input their true BATNA?
Are the probabilities that your tool calculates for whether each party accepts choosable to incentivize this?
I don’t see how they would be. If you do see a way, please share!
Yes, that is the crux of the issue. The BATNA is the theoretically correct answer, but hard to discover/elicit accurately.