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The Limits of Commitment

Author

Listed:
  • Jacopo Bizzotto

    (Oslo Business School, Oslo Metropolitan University)

  • Toomas Hinnosaar

    (University of Nottingham)

  • Adrien Vigier

    (University of Oxford)

Abstract

We study partial commitment in leader-follower games. A collection of subsets covering the leader's action space determines her commitment opportunities. We characterize the outcomes resulting from all possible commitment structures of this kind. If the commitment structure is an interval partition, then the leader's payoff is bounded by the payoffs she obtains under the full and no-commitment benchmarks. We apply our results to study new design problems.

Suggested Citation

  • Jacopo Bizzotto & Toomas Hinnosaar & Adrien Vigier, 2022. "The Limits of Commitment," Working Papers 202206, Oslo Metropolitan University, Oslo Business School.
    • Handle: RePEc:oml:wpaper:202206
    DOI: 10.48550/arXiv.2205.05546
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    More about this item

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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