Real world players often increase their payoÞs by voluntarily committing to play a .xed strategy, prior to the start of a strategic game. In fact, the players may further bene.t from commitments that are conditional on the commitments of others. This paper proposes a model of conditional...

This paper deals with weighted utility, optimism vs. pessimism, and subjective valuation of European and American options. What connects these subjects is stochastic dominance and its behavioral effects. We show that one probability distribution likelihood-ratio dominates another distribution if...