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Solving Dilemma Games with Evolving Conditional Commitments

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  • Oechssler, Jörg

Abstract

I study a formal mechanism that can sustain Pareto optimality in a new and very broad class of dilemma games. In the absence of a central authority that could enforce multilateral agreements, the mechanism is based on binding unilateral commitments, which condition a player's (possibly multidimensional) contribution on other players' contributions. I show that unexploitable better response dynamics converge to Pareto optimal contributions when the game is played recurrently.

Suggested Citation

  • Oechssler, Jörg, 2026. "Solving Dilemma Games with Evolving Conditional Commitments," Working Papers 0770, University of Heidelberg, Department of Economics.
    • Handle: RePEc:awi:wpaper:0770
    Note: This paper is part of http://archiv.ub.uni-heidelberg.de/volltextserver/view/schriftenreihen/sr-3.html
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