For honesty to work as a solution to a commitment problem between players A and B,
A) the entire world must be honest.
B) A and B must be honest.
C) only A need be honest.
D) only B need be honest.
E) A and B must be honest and they must perceive the other as being honest.

Question

Quizplus · Accepted Answer

For honesty to work as a solution to a commitment problem between players A and B, both players must be honest and perceive the other as being honest. If only one player is honest, the other may still defect and exploit the situation. Additionally, if one player perceives the other as being dishonest, they may still defect even if the other is actually being honest. Therefore, both honesty and perceived honesty are necessary for a successful solution to a commitment problem.

For Honesty to Work as a Solution to a Commitment