COMMITMENT AND OBSERVABILITY IN GAMES

Models of commitment make two assumptions: there is a first mover, and his action is perfectly observed by the subsequent mover. The purpose of this apper is to disentangle these two assumptions, in order to see if a strategic benefit from commitment remains when the first mover's choice is imperfectly observed. The basic finding is that the first-mover advantage is eliminated when there is even a slight amount of noise associated with the observation of the first mover's selection. (C) 1995 Academic Press, Inc.