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Unformatted text preview: The player to be deterred must prefer the original status quo to the outcome associated with the threat For both: CC > DD Assumption: Credibility • The player being deterred believes that the threat will be carried out if the prohibited action is taken B must perceive A: DD > CD A must perceive B: DD > DC Overall – Choice Situation • Assuming transitive preferences and combining the above four assumptions implies: A: DC > CC > DD > CD B: CD > CC > DD > DC D Victory for A (B,W) Mutual Loss (T,T) C D C Status Quo (S,S) Victory for B (W,B)...
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- Fall '08
- status quo, CD > CC