| Commitment makes our firm | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Tough | Soft | |||||||||||||||
| Strategic Complements |
Puppy Dog A commitment would make us Tough, but then our rivals would become Tough too. So don't do it. | Fat Cat Make a commitment to be Soft, so our rivals will be Soft. |
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| . | ||||||||||||||||
| Strategic Substitutes | Top
Dog Make a commitment to be Tough, so our rivals will be Soft. |
Lean and Hungry Look A commitment would make us Soft, but then our rivals would become Tough. So don't do it. |
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Fudenberg, Drew and Jean Tirole (1984) ``The Fat-Cat Effect, The
Puppy-Dog Ploy, and the Lean and Hungry Look,'' American Economic
Review May 1984, 74: 361-66.