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A commitment folk theorem

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Author Info

  • Kalai, Adam Tauman
  • Kalai, Ehud
  • Lehrer, Ehud
  • Samet, Dov

Abstract

Real world players often increase their payoffs by voluntarily committing to play a fixed strategy, prior to the start of a strategic game. In fact, the players may further benefit from commitments that are conditional on the commitments of others. This paper proposes a model of conditional commitments that unifies earlier models while avoiding circularities that often arise in such models. A commitment folk theorem shows that the potential of voluntary conditional commitments is essentially unlimited. All feasible and individually rational payoffs of a two-person strategic game can be attained at the equilibria of one (universal) commitment game that uses simple commitment devices. The commitments are voluntary in the sense that each player maintains the option of playing the game without commitment, as originally defined.

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Bibliographic Info

Article provided by Elsevier in its journal Games and Economic Behavior.

Volume (Year): 69 (2010)
Issue (Month): 1 (May)
Pages: 127-137

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Handle: RePEc:eee:gamebe:v:69:y:2010:i:1:p:127-137

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Web page: http://www.elsevier.com/locate/inca/622836

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References

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Citations

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Cited by:
  1. Rohan Dutta & Ryosuke Ishii, 2013. "Coordinating by Not Committing : Efficiency as the Unique Outcome," Cahiers de recherche 10-2013, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
  2. Francoise Forges & Roberto Serrano, 2011. "Cooperative Games with Incomplete Information: Some Open Problems," Working Papers 2011-15, Brown University, Department of Economics.
  3. Koessler, Frédéric & Lambert-Mogiliansky, Ariane, 2013. "Committing to transparency to resist corruption," Journal of Development Economics, Elsevier, vol. 100(1), pages 117-126.
  4. Francoise Forges & Antoine Salomon, 2014. "Bayesian repeated games and reputation," Working Papers hal-00803919, HAL.
  5. Wiebe Hoek & Cees Witteveen & Michael Wooldridge, 2013. "Program equilibrium—a program reasoning approach," International Journal of Game Theory, Springer, vol. 42(3), pages 639-671, August.

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