Mutually perceived signals explain the pull of psychologically dominant equilibria.

Evidence

The power of similar mutually perceived signals seems to lie behind the concept of “psychological dominance” used by Luce and Raiffa to discuss the appeal in certain games of a jointly inadmissible equilibrium point. — Thomas C. Schelling, The Strategy of Conflict, 874

Categorization

  • XREF: Directly relevant to the reader’s project: mutually perceived signals are the mechanism by which Don Corleone’s word constitutes a focal commitment even without enforceable contract. — connects to: Mutual fear can amplify exogenously into runaway escalation via feedback loops. — Thomas C. Schelling, The Strategy of Conflict, 485; Power operates partly through perception rather than explicit verbal communication; Even explicit bargaining relies on tacit signals to coordinate expectations — Thomas C. Schelling, The Strategy of Conflict, 187 (+2 more)

Broader Connections