follows because a lack of board independence serves as a substitute for commitment. Boards that are dependent on the incumbent …

explanations for armed conflicts: uncertainty, commitment, and indivisibility. Two parties play a Markov game that combines stages …

output as well as the tax rate are increasingin investment. With divisible investment, commitment always leads to the first … underinvestment with taxation. With indivisible investmentand direct regulation, commitment leads to the first best. With taxation … however,commitment may not lead to the first best and time consistency can lead to higherwelfare. This remarkable result …