The Question
Identify a real-world environment in which there is strategic interde- pendence and commitment can play a central role for a decision-maker in improving their outcome from a strategic interaction. After describing the features of the environment, formally model it as a game explaining the assumptions you make; consider an analysis of the environment using the tools of game theory; consider the credibility of threats/promises that play- ers might like to make; and carefully analyse the efficacy of at least one commitment mechanism. In addition, critically reflect on the use of game theory in understanding the real world.
