Imagine you have an identical twin. You and your sibling are negotiating a trade with a pair of identical twins who are not related to you. The other twins are trying to force you into a trade that would leave you indifferent to your no-trade allocation. You and you sibling
A) have to accept the trade because there is nothing you can do
B) can try to play one of the other twins off against the other to achieve a better allocation
C) should accept the offer because the other twins could force you into an even worse trade

Question

Quizplus · Accepted Answer

Since you and your identical twin have the same preferences, the other set of identical twins cannot offer you a trade that is better than your no-trade allocation. Therefore, the best option is to try to play the other twins off against each other to achieve a better allocation. This could involve highlighting any differences in preferences that the other twins might have, or trying to negotiate a better deal by using bargaining power. Option A is not relevant since you do have the ability to negotiate. And option C assumes that the other set of twins has more bargaining power than they actually do.

Imagine You Have an Identical Twin