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Commitment and Observability in Games

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  • Kyle Bagwell

Abstract

Models of commitment make two assumptions: there is a first mover, and his action is perfectly observed by the subsequent mover. The purpose of this paper is to disentangle these two assumptions, in order to see if a strategic benefit from commitment remains when the first-mover's choice is imperfectly observed. The basic finding is that the first-mover advantage is eliminated when there is even a slight amount of noise associated with the observation of the first-mover's selection.

Suggested Citation

  • Kyle Bagwell, 1992. "Commitment and Observability in Games," Discussion Papers 1014, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    • Handle: RePEc:nwu:cmsems:1014
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    References listed on IDEAS

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    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

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