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Expand file tree Collapse file tree Original file line number Diff line number Diff line change 11EFG 2 R "Bagwell (GEB 1995) commitment and (un)observability" { "Player 1" "Player 2" }
22"This is a Stackelberg-type game with imperfectly observed commitment, following the
3- analysis of Bagwell [^ Bag1995]. The outcomes and payoffs are the same as in Bagwell's
3+ analysis of Bagwell [Bag1995]_ . The outcomes and payoffs are the same as in Bagwell's
44model. This example sets the probability that the follower 'correctly' observes the
55leader's action as .99 (99/100). The key result is that the only pure-strategy
66equilibrium that survives if observability is imperfect is the one in which players
77choose the actions that would form an equilibrium if the game was a *simultaneous-move*
88game. There is an equilibrium in which the 'Stackelberg' action is played with high
99probability, but strictly less than one.
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11- [^ Bag1995]: Bagwell, Kyle (1995) Commitment and observability in games.
11+ [Bag1995]_ : Bagwell, Kyle (1995) Commitment and observability in games.
1212 _Games and Economic Behavior_ 8: 271-280.
1313"
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