10.4 The equilibrium of this game in the absence of a commitment to tip is that the waiter will give bad service because if he provides good service, he knows that the diner’s best option will be not to tip, which leaves the waiter worse off than if he had provided good service. Since the diner gets an outcome of 20 if he can commit to leaving a tip (15 more than he would get in the absence of such a commitment), he would be willing to pay up to 15 for the right to commit. LO2, LO5, LO6