Repository logo

Infoscience

  • English
  • French
Log In
Logo EPFL, École polytechnique fédérale de Lausanne

Infoscience

  • English
  • French
Log In
  1. Home
  2. Academic and Research Output
  3. Preprints and Working Papers
  4. A Continuum of Commitment
 
working paper

A Continuum of Commitment

Weber, Thomas A.  
2013

We examine a generic three-stage game for two players with alternating moves, where the first player can choose the level of adjustment cost to be paid in the last period for modifying the action she announced in the first period. In the resulting continuum of commitment options, convexifying the choice between first-mover and second-mover advantage in pure strategies, we characterize when an intermediate adjustment-cost level is chosen in equilibrium. We show that the wastefulness of the adjustment cost may be in the players' best interest, improving both of their individual net payoffs over making any fraction of the adjustment cost a side payment from the first to the second player.

  • Details
  • Metrics
Type
working paper
Author(s)
Weber, Thomas A.  
Date Issued

2013

Publisher

EPFL CDM MTEI

Subjects

adjustment cost

•

endogenous commitment

•

first-mover advantage

•

regulatory commitment

•

second-mover advantage

•

time consistency

URL

URL

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2359377
Written at

EPFL

EPFL units
OES  
Available on Infoscience
December 16, 2013
Use this identifier to reference this record
https://infoscience.epfl.ch/handle/20.500.14299/97975
Logo EPFL, École polytechnique fédérale de Lausanne
  • Contact
  • infoscience@epfl.ch

  • Follow us on Facebook
  • Follow us on Instagram
  • Follow us on LinkedIn
  • Follow us on X
  • Follow us on Youtube
AccessibilityLegal noticePrivacy policyCookie settingsEnd User AgreementGet helpFeedback

Infoscience is a service managed and provided by the Library and IT Services of EPFL. © EPFL, tous droits réservés