How do we explain this result? First of all we should realize that the result is
not in any way a refutation of game theory. It is a reminder that we should
always check our assumptions before drawing conclusions.
Game theory 375
Case study 9.3: Credible commitments21
John Lott’s book Are Predatory Commitments
Credible? Who Should the Courts Believe? (1999) is
an attempt to test one of the implied assumptions of
game-theoretic models