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  2. Business
  3. Principles of Economics Study Set 4
  4. Quiz 9: Games and Strategic Behavior

An Action That Makes Otherwise Empty Threats or Promises Credible

Question 81
Multiple Choice

An action that makes otherwise empty threats or promises credible is called a: A)Nash equilibrium. B)commitment device. C)strategic device. D)dominant strategy.

Related questions
Q 82
According to the textbook,one possible way of solving the commitment problem in the kidnapping game is for the victim to: A)give the kidnapper a blank check. B)promise never to reveal the kidnapper's identity. C)offer to cut off one finger to show his sincerity. D)do something illegal and allow the kidnapper to record it.
Q 83
According to the textbook,owners of restaurants have solved the _______ their wait staff by paying low wages and encouraging tipping by customers. A)credible threats by B)commitment problem with C)credible promises by D)salary problems of
Q 84
In a situation in which there exists a commitment problem,commitment devices: A)increase efficiency. B)decrease efficiency. C)create a situation that is "smart for one but dumb for all". D)create a situation that leaves money on the table.
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