The bargaining games we have considered in this chapter have private values: The players do not…

The bargaining games we have considered in this chapter have private values: The players do not care about their opponents’ private information per se (but they try to learn about it to predict their opponents’ future behavior). Some interesting bargaining games exhibit common values (see also exercise 10.8). Consider the following model of out-of-court settlement, due to Spier (1989). 41 Player 1, the plaintiff, is uninformed and