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ehavior in stage 1. However, if the inter actor A is aware of this, hewill discard B's promises and threats as 'cheap talk' and expect B todo what is best for him in the actual stage 2 situation. If B does notwant to limit his influence he has to, at least occasionally, implementactions that are costly to himself to back up his promises and threats.(Dixit, & Nalebuff 1991)To infiuence others the person has better adjust his policy from strictact rationality to looking at the package (stage O - 2) and socialinteraction as series of packages. Many philosophers hold that a morelong term strategic consideration is not sufficient to back up thecommitment in stage O and want B's behavior transformed fromcalculated strategic move to categorical morality, that is strictdeontological behavior independent of long-term consequences. Iwill discuss two different lines: the finn irrationai commitment byFrank (1988) and the finn rationai commitment by Gauthier (1986).The problem description needs to be developed a little more. A has achoice in stage 1 between 'offence' and 'no offence'. In stage 2, Bwill also choose 'no offence' if that is A's choice. But a choice of'offence' by A can be followed either by 'acceptance' or by'retaliation'. The different outcomes can be described as payoffs onan ordinal scale. A's payoff of outcomes (A's action; B's action) is: 3(offence; acceptance), 2 (no offence; no offence) and 1 (offence;retaliation). B's payoff is: 3 (no offence; no offence), 2 (offence;acceptance) and 1 (offence; retaliation). What can B do to stop Afrom offenee and then expect B to verbally object, but then rationallychoose a bad alternative rather than the very worst?III : 17

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