Loan commitments represent more than 82 percent of all commercial and industrial loans by domestic banks. This paper develops a valuation model for loan commitments incorporating early exercise, multiple fees, partial exercise and credit risk. The model is analytically tractable and easy to implement. Using a sample of commercial paper backup credit lines from the Dealscan database, we show tha...

We present a new definition of computationally binding commitment schemes in the quantum setting, which we call “collapse-binding”. The definition applies to string commitments, composes in parallel, and works well with rewindingbased proofs. We give simple constructions of collapse-binding commitments in the random oracle model, giving evidence that they can be realized from hash functions lik...

Information system development, like information systems adoption, can be considered to be a change process; yet problems arise when change is introduced. Resistance to the change can develop and the reasoning behind the resistance needs to be determined in order to address it. Resistance can be straightforward, where the change threatens a person’s job or creates stress for individuals, yet re...

Agents can use commitments and self-control to achieve their normative objectives and avoid spontaneous temptations. However, due to weak resolve they may also forgo commitment opportunities and succumb to temptations later. Anticipating such failures, agents may use strategies such as promises and deadlines to help themselves make proper commitments later. We identify such behaviors via a thre...

In biand multilateral interactions, parties frequently make weak commitments, i.e., commitments to future actions from which they may nonetheless deviate at some cost. For example, partners in a strategic alliance usually increase their mutual commitment step by step, where intermediate stages imply only a weak commitment. This paper proposes a new mechanism by which weak commitments lead to im...