A commitment strategy is an agreement in which players agree to:
A) submit to a penalty in the future if they defect from a given strategy.
B) cooperate before the game begins.
C) cooperate in repeated games until someone defects.
D) None of these is a definition of a commitment strategy.

Question

Quizplus · Accepted Answer

A commitment strategy involves players agreeing to submit to a penalty in the future if they defect from a given strategy. This penalty serves as a deterrent for defection and encourages cooperation. Choice B refers to a pre-game agreement, and choice C is a description of a repeated game strategy, neither of which involves committing to a penalty for defection.

A Commitment Strategy Is an Agreement in Which Players Agree