commitment devices in game theory

Commitment devices in game theory are tools or strategies that help individuals stick to their plans or goals, especially when facing temptations or conflicting interests. They create binding agreements or penalties that make it more difficult to back out of a decision. For example, someone might commit to a financial penalty for not exercising regularly. This helps reinforce their commitment to a healthier lifestyle by making the cost of failure tangible. Essentially, these devices help individuals align their actions with their long-term goals, promoting better decision-making in uncertain situations.