In Bayesian game theory, each player obeys the Savage axioms and there is common knowledge of this. The author shows that two of the less controversial axioms (ordering and dominance) are incompatible with some elementary game theoretic principles. He furthermore argues that his impossibility...

Several contractual situations are such that the parties may 'step out' of negotiations and take up outside opportunities only if there is mutual consent to do so. Examples include employer - employee negotiations, divorce and inheritance procedures, and arbitration. To analyse such cases we...