Commitment strategies:
A) are not necessary to reach a mutually beneficial equilibrium in repeated games.
B) are always needed to reach a mutually beneficial equilibrium in single-round games.
C) usually fail to work.
D) are not observed in reality.

Question

Quizplus · Accepted Answer

Commitment strategies are only necessary in single-round games where there is no opportunity for repeated play and building a reputation. In repeated games, players can use their past behavior to signal their commitment to future cooperative behavior, making specific commitment strategies unnecessary.

Commitment Strategies