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Commitment versus Flexibility in Enforcement Games

Author

Listed:
  • Leshem Shmuel

    (USC Law School)

  • Tabbach Avraham D.

    (Tel Aviv University)

Abstract

This paper studies the role of commitment in the design of enforcement mechanisms when enforcement can remedy harm from non-compliance. We consider a game between an enforcement authority ("enforcer") and an offender in which either the enforcer or the offender may act as a Stackelberg leader. The enforcer must choose whether to move first by committing to an enforcement strategy--thereby directly affecting the level of non-compliance; or rather let the offender make the first move--thereby calibrating the level of enforcement to the actual level of non-compliance. We show that the value of commitment to the enforcer depends on each player's responsiveness to a change in the other player's strategy choice. Commitment to an enforcement strategy is thus not always in the enforcer's interest.

Suggested Citation

  • Leshem Shmuel & Tabbach Avraham D., 2012. "Commitment versus Flexibility in Enforcement Games," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 12(1), pages 1-42, May.
    • Handle: RePEc:bpj:bejtec:v:12:y:2012:i:1:n:18
    DOI: 10.1515/1935-1704.1833
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    References listed on IDEAS

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    4. Amir, Rabah & De Castro, Luciano, 2017. "Nash equilibrium in games with quasi-monotonic best-responses," Journal of Economic Theory, Elsevier, vol. 172(C), pages 220-246.

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