Author Question: Credible promises and hostage mechanisms can support a continuous stream of cooperative exchanges ... (Read 54 times)

nelaaney · **on:** Jul 1, 2018

Credible promises and hostage mechanisms can support a continuous stream of cooperative exchanges except when
a. the promisor is better off fulfilling than ignoring his promise
b. neither party has a prior dominant strategy
c. the hostage can be revoked for just causes
d. the hostage is more valuable than any given exchange
e. the hostage is difficult to replace

Question 2

In the sequential negotiation games:
a. You can induce a change in the strategy in your opponent only if your threat is believed
b. Any threat can induce a change in strategy in your opponent
c. A threat that is believed is one that you will not have to carry out
d. A and C