The bargaining solution’s appeal derives from its focal quality, not its formal derivation

Evidence

What does this prove or suggest? I am not arguing for the Nash point. I am arguing rather that the appeal of the Nash point to a game theorist (as introspective game player) may be the reverse of the sequence I have just run through. It may be the focal quality of the Nash-point in the pure coordination game—the unequivocal usefulness of a uniquely defined symmetry concept, when no nonmathematical impurities are available to help—that makes it a controlling influence in the tacit and terribly cooperative boundary-line variant of the game; that in turn makes it a reliable guide in the less demanding tacit bounded-area variant of the game; and that in turn takes the heart out of any player in the explicit bargaining game who might hope that expectations could focus anywhere else. — Thomas C. Schelling, The Strategy of Conflict, 668

Categorization

  • DEEPTHINKING: Reverses the standard genealogy of the Nash solution — coordination focal quality precedes and explains bargaining power, a genuinely paradigm-shifting inversion.
  • XREF: Directly supports the reader’s claim that private-enforcement conventions arise from focal coordination before any formal bargaining logic can apply. — connects to: Tacit bargaining forces one party to accept an unfair focal point — Thomas C. Schelling, The Strategy of Conflict, 150; Tacit bargaining requires coordinating on equivalent solutions, not just equal-valued ones — Thomas C. Schelling, The Strategy of Conflict, 859; Bargaining outcomes rest on convergent reflexive expectations, not on force or merit — Thomas C. Schelling, The Strategy of Conflict, 177 (+1 more)

Broader Connections