Jamal Awil

← The Strategy of Conflict

The tacit game now has a perverse incentive structure. [fact]

The tacit game now has a perverse incentive structure. There is no rational reason for either player to demand less than the whole of the available reward; each knows this and knows that the other knows it. There is no incentive to reduce one's claim because any residual dispute costs the player no more than he would lose if he reduced his claim to eliminate the dispute. The single equilibrium point yields zero for both players.

Thomas C. Schelling, The Strategy of Conflict, loc. 627