Discussion paper

DP17307 The Limits of Commitment

We study partial commitment in leader-follower games. A collection of subsets covering the leader's action space determines her commitment opportunities. We characterize the outcomes resulting from all possible commitment structures of this kind. If the commitment structure is an interval partition, then the leader's payoff is bounded by the payoffs she obtains under the full and no-commitment benchmarks. We apply our results to study new design problems.


Bizzotto, J, T Hinnosaar and A Vigier (eds) (2022), “DP17307 The Limits of Commitment”, CEPR Press Discussion Paper No. 17307. https://cepr.org/publications/dp17307