Threats require commitment, not comparative damage to both parties

Evidence

The fact that some kind of commitment, or at least appearance of commitment, must lie behind the threat and be successfully communicated to the threatened party is in contradiction to another notion that often appears in game theory. This is the notion that a threat is desirable, or admissible, or plausible, only if the reaction threatened would cause worse damage to the threatened party than to the party making the threat. This is the view of Luce and Raiffa, who characterize threats by the phrase, “This will hurt you more than it hurts me,” explicitly making threats depend on interpersonal utility comparisons. — Thomas C. Schelling, The Strategy of Conflict, 296

Categorization

  • XREF: Directly extends Gambetta’s private protection market analysis and the reader’s Milgrom et al. private-judge framework — Schelling is here dismantling the intuitive ‘this hurts you more than me’ criterion for credible threats. — connects to: A threat to act is only credible if one is committed, not merely willing — Thomas C. Schelling, The Strategy of Conflict, 414; Limited war’s main function is signaling escalation risk, not local military gain. — Thomas C. Schelling, The Strategy of Conflict, 431; Deterrence rests on surviving retaliation capacity, not on existing destructive capacity. — Thomas C. Schelling, The Strategy of Conflict, 528 (+9 more)
  • DEFINE: Explicitly defines and rejects the Luce-Raiffa characterization of threats as interpersonal utility comparisons.

Broader Connections