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In the midst of talking about two people, Bill and Sally, who are bargaining and trying to get the best deal, to illustrate various types of bargaining:
"SECTION 7.4 Bargaining with Asymmetric Impatience
The exact sharing of the surplus using this analysis depends on the number of rounds of offers and the magnitude of the transaction costs. A 50/50 split will occur if the cost of delay is the same for the two parties, the number of rounds is large, and the cost of a one-period delay is small. Although casual empiricism suggests that a 50/50 split is often chosen, this is not always the case. Those of you who have seen or heard the musical production of Les Miserables may recall the following exchange between Cosette's mother, Fantine (destitute, and in need of money to help her young daughter, Cosette), and an unsavory arbitrageur:
Arbitrageur: Come here my dear, let's see that trinket you wear. This
Fantine: Madame, I'll sell it to you.
Arbitrageur: I'll give you four.
Fantine: That wouldn't pay for the chain.
Arbitrageur: I'll give you five. You're far to eager to sell. It's up to you.
Fantine: It's all I have.
Arbitrageur: That's not my fault.
Fantine: Please make it ten.
Arbitrageur: No more than five, my dear we must all stay alive...
Clearly, we are left with the sense that the gains from exchange will be far removed from a 50/50 split. In fact, we are left with the impression that Cosette's mother has put herself in a very bad bargaining position by revealing her impatience. Back to Bill and Sally..."