Question

Commitment strategies work by... A. making it impossible to choose other strategies B. eliminating the first...

Commitment strategies work by...

A. making it impossible to choose other strategies

B. eliminating the first mover advantage

C. making a desirable strategy more profitable than the alternatives

D. avoiding the prisoner's dilemma problem

Homework Answers

Answer #1

Option D

A commitment problem is a situation in which people cannot achieve their goals because of an inability to make credible threats or promises. If both players in the Prisoner's Dilemma could make binding promise to remain silent, both would be assured of a shorter sentence.

Commitment strategy is an agreement to submit to a penalty in the future for defecting from a different strategy.it involves changing the payoffs, agreeing to future penalties can allow players to reach a mutually beneficial equilibrium that would otherwise be difficult to maintain. It is hard to make .

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