Tacit bargaining requires coordinating on equivalent solutions, not just equal-valued ones

Evidence

With full information about each other’s value systems and a homogeneous set of gains to be divided, there may be an infinity of equivalent solutions, all yielding the same values to the two players, but no difficulty in agreeing on an arbitrary choice among this indifferent set. But tacit bargaining often requires a further degree of coordination, namely, a coordinated choice even among equivalent divisions of the gains. Negotiation over a boundary line in homogeneous territory is thus different from the simultaneous dispatch of troops to take up positions representing claims (as in Question 6 on page 62); such claims may overlap and cause trouble even though the terrain values claimed are consistent. — Thomas C. Schelling, The Strategy of Conflict, 859

Categorization

  • DEFINE: Clarifies that full-information bargaining can stay indifferent among equivalent outcomes while tacit bargaining must coordinate on one — a distinction central to Schelling’s framing.
  • XREF: connects to: Nuclear arms negotiations are an open-ended bargaining problem beyond fixed payoff matrices — Thomas C. Schelling, The Strategy of Conflict, 515; The bargaining solution’s appeal derives from its focal quality, not its formal derivation — Thomas C. Schelling, The Strategy of Conflict, 668; Tacit bargaining over distribution can be conducted only through play itself. — Thomas C. Schelling, The Strategy of Conflict, 791 (+6 more)

Broader Connections