Regarding the yard example, indeed Alice needs Brian as much as Brian needs Alice. So from a rational perspective they should go ahead with the 50% split since it's better than nothing. Then comes in the emotional issue of fairness that game theory is a bit weak on: Alice will deem that this is not fair, Brian may submit and go for a ratio approach which means that they settle in a new type of arrangement based say on time percentage split. Or Brian will play hard to get, Alice feeling cheated will scrap the whole deal, and a third player Tony will come in and usurp the business from both Alice and Brian. Great post,/tx
Regarding the yard example, indeed Alice needs Brian as much as Brian needs Alice. So from a rational perspective they should go ahead with the 50% split since it's better than nothing. Then comes in the emotional issue of fairness that game theory is a bit weak on: Alice will deem that this is not fair, Brian may submit and go for a ratio approach which means that they settle in a new type of arrangement based say on time percentage split. Or Brian will play hard to get, Alice feeling cheated will scrap the whole deal, and a third player Tony will come in and usurp the business from both Alice and Brian. Great post,/tx