Commitment devices are necessary when:
A)people cannot correctly identify their dominant strategy.
B)players cannot trust that other players will avoid playing a dominated strategy.
C)following through on a threat or promise is not in a player's best interest.
D)commitments cannot be purchased.

Question

Quizplus · Accepted Answer

A commitment device is a way of changing incentives to as to make otherwise empty threats or promises credible.

Commitment Devices Are Necessary When