Which of the following statements about the use of a commitment strategy is true?
A)It can alter the payoffs in a simultaneous game, but not in a sequential game.
B)It can alter payoffs in a sequential game, but not in a simultaneous game.
C)It has little impact on payoffs in both simultaneous and sequential games.
D)It can alter the payoffs in both simultaneous and sequential games.

Question

Quizplus · Accepted Answer

Commitment strategies can influence the outcomes in both simultaneous and sequential games by changing the payoffs and thereby potentially altering the strategies of the players involved. This can lead to different equilibrium outcomes than would occur without such commitments.

Which of the Following Statements About the Use of a Commitment