Barry Nalebuff

So imagine a person is selling their family business and it's a gas station. And the reason they're selling it is because they want to go on a sailing trip around the world. Should they reveal that or not? Well, you could say it's a frivolous reason. And so let's keep it hidden. Let's just say I'm planning to retire and spend more time with my grandkids.

So imagine a person is selling their family business and it's a gas station. And the reason they're selling it is because they want to go on a sailing trip around the world. Should they reveal that or not? Well, you could say it's a frivolous reason. And so let's keep it hidden. Let's just say I'm planning to retire and spend more time with my grandkids.

But when it comes down to it, there are good reasons and bad reasons for selling. The buyer knows that you've got a for sale sign, so they're wondering, why are you selling? Is it that there's a leak in one of the storage tanks and the gas station is about to become a Superfund cleanup site? Is the highway exit ramp about to close so there will be no more cars coming this way?

But when it comes down to it, there are good reasons and bad reasons for selling. The buyer knows that you've got a for sale sign, so they're wondering, why are you selling? Is it that there's a leak in one of the storage tanks and the gas station is about to become a Superfund cleanup site? Is the highway exit ramp about to close so there will be no more cars coming this way?

But when it comes down to it, there are good reasons and bad reasons for selling. The buyer knows that you've got a for sale sign, so they're wondering, why are you selling? Is it that there's a leak in one of the storage tanks and the gas station is about to become a Superfund cleanup site? Is the highway exit ramp about to close so there will be no more cars coming this way?

In fact, the idea that you want to take a trip around the world is a good reason Not a bad reason from the buyer's perspective. And so, yes, go ahead and let them know why it is you are selling the station.

In fact, the idea that you want to take a trip around the world is a good reason Not a bad reason from the buyer's perspective. And so, yes, go ahead and let them know why it is you are selling the station.

In fact, the idea that you want to take a trip around the world is a good reason Not a bad reason from the buyer's perspective. And so, yes, go ahead and let them know why it is you are selling the station.

That's true. So that's a great case. That's like I said. When the seller values it less than the buyer does, there's a pie, and that's the time to do the transaction. So you valued it near zero, the buyer values it at $1,000, great.

That's true. So that's a great case. That's like I said. When the seller values it less than the buyer does, there's a pie, and that's the time to do the transaction. So you valued it near zero, the buyer values it at $1,000, great.

That's true. So that's a great case. That's like I said. When the seller values it less than the buyer does, there's a pie, and that's the time to do the transaction. So you valued it near zero, the buyer values it at $1,000, great.

Now it turns out if there are lots of buyers, and one values it at 800, one values it at 900, and one values it at 1,000, then you want to sell it to the $1,000 person, and I think the right price there is more like 950. because your alternative is I can sell it to the $900 person. And so that's really my fallback. The reason I'm selling it to you is to beat the 900. I can't beat 900 without you.

Now it turns out if there are lots of buyers, and one values it at 800, one values it at 900, and one values it at 1,000, then you want to sell it to the $1,000 person, and I think the right price there is more like 950. because your alternative is I can sell it to the $900 person. And so that's really my fallback. The reason I'm selling it to you is to beat the 900. I can't beat 900 without you.

Now it turns out if there are lots of buyers, and one values it at 800, one values it at 900, and one values it at 1,000, then you want to sell it to the $1,000 person, and I think the right price there is more like 950. because your alternative is I can sell it to the $900 person. And so that's really my fallback. The reason I'm selling it to you is to beat the 900. I can't beat 900 without you.

You can't get this value, this extra value without me. And so we have an extra 100 to split. And that's why I think it should be 50-50.

You can't get this value, this extra value without me. And so we have an extra 100 to split. And that's why I think it should be 50-50.

You can't get this value, this extra value without me. And so we have an extra 100 to split. And that's why I think it should be 50-50.

They miss the opportunity to have creative solutions come into play. So if I go back to my couple selling the gas station, turns out that when they come back from their trip, they don't have a job. And as a result, they needed a big reserve fund to help tide them over until they find work. But the person buying the station thinks they're great managers and they're always short on good managers.

They miss the opportunity to have creative solutions come into play. So if I go back to my couple selling the gas station, turns out that when they come back from their trip, they don't have a job. And as a result, they needed a big reserve fund to help tide them over until they find work. But the person buying the station thinks they're great managers and they're always short on good managers.

They miss the opportunity to have creative solutions come into play. So if I go back to my couple selling the gas station, turns out that when they come back from their trip, they don't have a job. And as a result, they needed a big reserve fund to help tide them over until they find work. But the person buying the station thinks they're great managers and they're always short on good managers.