Commitment strategies are:
A)not needed to reach a mutually beneficial equilibrium in repeated games.
B)always needed to reach a mutually beneficial equilibrium in one-time games.
C)needed to reach a mutually beneficial equilibrium in both one-time and repeated games.
D)not useful in reaching a mutually beneficial equilibrium and don't occur often in reality.

Question

Quizplus · Accepted Answer

Commitment strategies are not necessary in repeated games because the possibility of future interactions can naturally lead to a mutually beneficial equilibrium through strategies like tit-for-tat. In repeated games, the expectation of future interactions encourages cooperation without the need for explicit commitment strategies.

Commitment Strategies Are