Shavell, Steven; Spier, Kathryn - In: Topics in Economic Analysis & Policy 2 (2002) 1, pp. 1024-1024
This paper explores the power of threats in the absence of binding commitment. The threatener cannot commit to carry out the threat if the victim refuses payment, and cannot commit not to carry out the threat if payment is made. An important assumption of the model is that once the threat is...
