Jamal Awil

← The Strategy of Conflict

Even if the future will bring no recurrence. [fact]

Even if the future will bring no recurrence, it may be possible to create the equivalence of continuity by dividing the bargaining issue into consecutive parts. If each party agrees to send a million dollars to the Red Cross on condition the other does, each may be tempted to cheat if the other contributes first, and each one’s anticipation of the other’s cheating will inhibit agreement. But if the contribution is divided into consecutive small contributions, each can try the other’s good faith for a small price. Furthermore, since each can keep the other on short tether to the finish, no one ever need risk more than one small contribution at a time. Finally, this change in the incentive structure itself takes most of the risk out of the initial contribution; the value of established trust is made obviously visible to both.

Thomas C. Schelling, The Strategy of Conflict, loc. 119