Commitments, promises, and threats all reduce a player’s own payoffs visibly and irreversibly

Evidence

The first point to observe is that a commitment, a promise, or a threat can usually be characterized in a fashion equivalent to the following: to make one of these moves, a player selectively reduces—visibly and irreversibly—some of his own payoffs in the matrix. This is what the move amounts to. {81} We could also say that one openly selects a strategy in advance for responding to the other’s choice; but more than selection is required. The player must invoke penalty on his own failure to pursue subsequently the particular strategy of response that he has selected beforehand. And to invoke a penalty on failure to follow a strategy is mathematically equivalent to subtracting the amount of the penalty from one’s own payoffs in all cells that do not correspond to the strategy so selected. — Thomas C. Schelling, The Strategy of Conflict, 347

Categorization

  • DEFINE: A compact formal definition: every strategic move is a self-imposed visible penalty, reducible to subtracting payoffs from one’s own cells.
  • XREF: Directly instantiates Gambetta’s model of private protection where the Mafia’s credibility rests on self-binding visible commitments; also Schelling’s own hostage concept — Corleone taking on a debt of honor functions exactly as a self-reduced payoff. — connects to: Even a player sure of his own restraint inherits the other’s amplified fears — Thomas C. Schelling, The Strategy of Conflict, 471; One player’s promise can worsen the other player’s position — Thomas C. Schelling, The Strategy of Conflict, 787; Commitment includes removing options, delegating fulfilment, and self-handicapping — Thomas C. Schelling, The Strategy of Conflict, 300 (+4 more)

Broader Connections