It is unlikely that players will attain the Stackelberg equilibrium if
A) both players have a dominant strategy.
B) the Stackelberg equilibrium is Pareto preferred to the Nash equilibrium.
C) the second player cannot be assured that the first player is committed to his strategy.
D) there is an advantage to being the second player.

Question

Quizplus · Accepted Answer

The commitment problem arises in situations where one player may have an incentive to deviate from their stated strategy. In a Stackelberg game, the first player commits to a strategy before the second player makes a decision. If the second player cannot be assured that the first player is committed to their strategy, they may not respond in the way that would lead to the Stackelberg equilibrium. Therefore, it is unlikely that players will attain the Stackelberg equilibrium if the second player cannot be assured of the first player's commitment (choice C).

It Is Unlikely That Players Will Attain the Stackelberg Equilibrium