Quota systems replace tacit coordination games with explicit enforced agreements.

Evidence

Quota systems in housing developments, schools, and so forth, can be viewed as efforts to substitute an explicit game with communication and enforcement for a tacit game that has an undesirably extreme “solution.” — Thomas C. Schelling, The Strategy of Conflict, 221

Categorization

  • XREF: Parallels the reader’s core interest: formal institutions (like the Mafia’s contractual enforcement) substitute for an unstable tacit status quo. — connects to: Formal agreements can strengthen tacit coordination norms. — Thomas C. Schelling, The Strategy of Conflict, 605; Formal game theory abstracted away the communication and enforcement systems it needs — Thomas C. Schelling, The Strategy of Conflict, 284; Explicit bargaining outcomes rest on prior tacit coordination between rational players — Thomas C. Schelling, The Strategy of Conflict, 858 (+3 more)

Broader Connections