Private Information Undermines Coase Theorem, Causing Inefficiency and Unfair Outcomes
In the study, researchers looked at how having secret information affects a bargaining game between two people. They found that when one person knows something the other doesn't, the game doesn't end up as efficient or fair as it should be. This means the outcome isn't what we'd expect based on a famous theory in economics. The players didn't always agree as predicted, and the results suggest things could go wrong in the bargaining process. So, having hidden info can lead to mistakes and unfair outcomes in negotiations, which goes against what we thought would happen according to a well-known principle in economics.