Specifically the bounce and friction combines.
For example the 3D Physic Material has a Friction Combine, and a Bounce Combine property to it which you can select how the materials interact with each other.
Average The two friction values are averaged.
Minimum The smallest of the two values is used.
Maximum The largest of the two values is used.
Multiply The friction values are multiplied with each other.
Yet Physics Material 2D do not have these properties. I would figure it to be one of these, but it isn’t documented anywhere.
My guess after minimal testing is that it uses the maximum of the 2, but I really have no clue.