Why you care about the other partys disagreement payoff

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Suppose that you must bargain with another party over how to realize a large joint value.

Explain why you care about the other party's disagreement payoff ?

Suppose that you must negotiate with another party and that you have an opportunity either to raise your disagreement payoff by 10 units or raise the maximal joint value v by 10 units. Which should you choose? Is your choice efficient?

Reference no: EM131251565

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