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Theory predicts that forward contracting can not only increase the likelihood of collusion but can also serve as a credible commitment device that minimizes firms' incentives to deviate from collusion.
We show that the presence of either zone-quadratic preferences or a zone-linear relationship between inflation and economic activity provides strong incentives to deviate from conventional linear policies.
The second part states that no bookmaker has incentives to deviate in Step 1.
In the BLE, players have no incentives to deviate given their beliefs about the consequences of deviating.
The first part of the definition states that no bettor has incentives to deviate in Step 2, even if the bookmakers did.
The second part states that no bookmaker has incentives to deviate in Step 1. Subgame perfect equilibria is a standard solution concept.
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Who has an incentive to deviate?
She's still making 0, so she has no incentive to deviate.
We first define the concept of a sustainable social norm, under which no peer has an incentive to deviate from the social strategy prescribed by the protocol.
We show that, under our properly designed contract, the two supply chain members are better off, and thus, they would have no incentive to deviate from the global solution that maximizes the system-wide profit.
Therefore, the player has no incentive to deviate from (0,0).
More suggestions(17)
incentives to exit
incentives to move
incentives to postpone
incentives to circumvent
incentives to spread
incentives to give
incentives to abandon
incentives to counter
incentives to eliminate
incentives to avoid
incentives to leave
incentives to ignore
incentives to register
incentives to take
incentives to work
incentives to hire
incentives to pay
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