58 969
Assignments Done
Successfully Done
In March 2018
Your physics homework can be a real challenge, and the due date can be really close — feel free to use our assistance and get the desired result.
Be sure that math assignments completed by our experts will be error-free and done according to your instructions specified in the submitted order form.
Our experts will gladly share their knowledge and help you with programming homework. Keep up with the world’s newest programming trends.

Answer on Microeconomics Question for Sherrie

Question #37210
Give two examples of lack of- commitment problems.
(involves one non-credible promise and one non-credible threat.) Can you find any
commitment device? The examples must be a unique story.
Expert's answer
Answer on Question#37210 - Econopmics - Microeconomics.

A non-credible threat is a term used in game theory and economics to describe a threat in a sequential game that a rational player would actually not carry out, because it would not be in his best interest to do so.
For example, suppose person A walks up, carrying a bomb, to another person B. A tells B he will set off the bomb, killing them both, unless B gives him all his money. If A is rational and non-suicidal he stands nothing to gain from setting off the bomb, so his threat cannot be considered credible. On the other hand, a person in the situation of B might give A his money, fearing that A is not rational, or might even be suicidal.
Non-credible promise is, for example, when you promise somebody to provide some service, if you can't or don't want to do it.

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!


No comments. Be first!

Leave a comment

Ask Your question