Tacit coordination supplies the empirical premise Nash solution concepts require

Evidence

In other words, by postulating the need for coordination of expectations, we seem to have a theoretical basis for something like the Nash axioms. What a theory like Nash’s needs is the premise that a solution exists; it is the observable phenomenon of tacit coordination that provides empirical evidence that (sometimes) rational expectations can be tacitly focused on a unique (and perhaps efficient) outcome, and that leads one to suppose that the same may be possible in a game that provides nothing but mathematical properties to work on. The Nash theory is vindication of this supposition—complete vindication if it dominates all competing mathematical solutions in terms of mathematical esthetics. The resulting focal point is limited to the universe of mathematics, however, which should not be equated with the universe of game theory. — Thomas C. Schelling, The Strategy of Conflict, 669

Categorization

  • XREF: Connects Schelling’s focal points to Milgrom et al.’s private judges and Nash bargaining — the reader’s stated cross-text analytical framework. — connects to: Mafia norms function as a self-perpetuating Nash equilibrium; Any theory of strategic coordination has an inherently empirical component — Thomas C. Schelling, The Strategy of Conflict, 662; Explicit bargaining outcomes rest on prior tacit coordination between rational players — Thomas C. Schelling, The Strategy of Conflict, 858 (+6 more)
  • DEFINE: Spells out that focal points rest on tacit coordination of expectations, which grounds the theoretical mapping.

Broader Connections