An outsider’s strength improves the weaker player’s bargaining position

Evidence

This implies that if Betty were stronger, then Cathy would get a better deal from Annie. For example, if AB generated 10M, AC generated 6M (same as before), and BC generated 6M, then Annie and Cathy would split more evenly: 4M and 2M rather than 5M and $1M. — Nicolas Baumard, A mutualistic approach to morality, 366

Categorization

• CANDY: A delightful counterintuitive fact: your pay in a two-party deal can improve when the OTHER person’s alternate partner gets stronger. Great dinner-party economics.
• XREF: connects to: One player’s promise can worsen the other player’s position — Thomas C. Schelling, The Strategy of Conflict, 787; In bargaining, seeming weakness can convert into strategic strength. — Thomas C. Schelling, The Strategy of Conflict, 130; Talented individuals merit larger shares because their outside options are stronger. — Nicolas Baumard, A mutualistic approach to morality: The…, 50

Related

• Talented individuals merit larger shares because their outside options are stronger. (similarity 0.80)

Broader Connections

• In bargaining, seeming weakness can convert into strategic strength. #complicates (0.80) — Thomas C. Schelling, The Strategy of Conflict, 130
• One player’s promise can worsen the other player’s position #complicates (0.75) — Thomas C. Schelling, The Strategy of Conflict, 787