A Commitment Folk Theorem

Conditional commitments are used by players who wish to strengthen their strategic positions. We propose a model of conditional commitments that unifies earlier models and avoids the pitfalls and circularities of such commitments. A commitment folk theorem shows that the potential of conditional commitment is essentially unlimited. All feasible and individually-rational payoffs of a two-person strategic game can be attained at the equilibria of one (universal) voluntary commitment game that uses simple commitment devices.