Albert has found an investment opportunity in the country of Exampleburg, but he lives elsewhere and the opportunity requires some local, "hands on" management. Albert can hire Bridgit, who lives in Exampleburg, to invest his money and manage the investment.Albert plans to hire Bridgit to invest $300 in this opportunity, and he is certain that the investment has 50% chance of profiting $200 (and a 50% chance of returning $0 profit). Bridgit sends Albert an email stating that she will happily invest his funds and manage the investment if she is allowed to keep 50% of the profits.

If both Albert and Bridgit know that Exampleburg lacks contract law and a functioning judicial system (i.e., Albert would not be able to recover damages from Bridgit in court) then:

() Albert anticipates that Bridgit will steal his investment, so he does not invest.

() Albert anticipates that Bridgit will cooperate, so he invests.

() We can anticipate that Bridgit will steal, but we can't know what Albert will do.

() If Albert invests, Bridgit will choose to invest because it would be in her financial interests to do so.