Sorry that they don’t generalize well. The third one still confuses me- why don’t three people who can cooperate fairly at the same level already share investment advice and have identical returns on investment? Is the person who is getting lower returns more risk-adverse than the other two? If so, why is a loan which has little risk of default made to the fourth at twice the high-risk yield, given that a low risk of default is a premise of the question?
Sorry that they don’t generalize well. The third one still confuses me- why don’t three people who can cooperate fairly at the same level already share investment advice and have identical returns on investment? Is the person who is getting lower returns more risk-adverse than the other two? If so, why is a loan which has little risk of default made to the fourth at twice the high-risk yield, given that a low risk of default is a premise of the question?