This paper introduces two-player bargaining problems allowing for asymmetric subjective uncertainty about factors that determine whether agreement is achieved, focusing on surprising events, i.e. events believed possible by only one player. A `subjective Nash' solution is proposed, in which a...

This paper introduces two-player bargaining problems allowing for asymmetric subjective uncertainty about factors that determine whether agreement is achieved, focusing on surprising events, i.e. events believed possible by only one player. A `subjective Nash' solution is proposed, in which a...

We offer a theory of polarization as an optimal response to ambiguity. Suppose individual A's beliefs first-order stochastically dominate individual B's. They observe a common signal. They exhibit polarization if A's posterior dominates her prior and B's prior dominates her posterior. Given...