In this gambling example we need to deal with two people So we have the following states of the world 2(1-p)(1-z)2 pz(1-2)(1-p)z(1-z) pz(1-)(1-p)z(1-z) p(1-2)2(1-p) If the other person has bet- what should you assume? So conditional upon you not getting aIn this gambling example we need to deal with two people: So we have the following states of the world: pz2 1  p1  z2 pz1  z 1  pz1  z pz1  z 1  pz1  z p1  z2 1  pz2 If the other person has bet– what should you assume? So conditional upon you not getting a