Thomas Schelling’s contribution to behavioural economics

Sugden, Robert (2025) Thomas Schelling’s contribution to behavioural economics. In: Elgar Encyclopedia of Behavioural and Experimental Economics. Edward Elgar, pp. 394-395. ISBN 9781802207729

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Abstract

In his 1960 book The Strategy of Conflict, Thomas Schelling proposed a reorientation of game theory, necessary because the game theory of the time used zero-sum methods to analyse non-zero-sum games. He proposed two lines of advance. One, which has been very influential in game theory, was to investigate moves such as threats and commitments that are important in real strategic interactions but not relevant for fully rational zero-sum play. The other, which is more behavioural and much more challenging to mathematical game theory, was to study the ‘perceptual and suggestive’ factors that allow players to solve equilibrium selection problems. Using intuitive arguments and informal experiments, he showed that ordinary human players can do this by using ‘labelling’ properties of games that standard theory abstracts from, and modes of reasoning that standard theory does not recognise.

Item Type:	Book Section
Uncontrolled Keywords:	thomas schelling,equilibrium selection,focal points,coordination games,economics, econometrics and finance(all),1*,i.e. grade for paper (not grade for author). a minor contribution but on a topic for which i have an international reputation. ,/dk/atira/pure/subjectarea/asjc/2000
Faculty \ School:	Faculty of Social Sciences > School of Economics
UEA Research Groups:	Faculty of Social Sciences > Research Centres > Centre for Behavioural and Experimental Social Sciences Faculty of Social Sciences > Research Centres > Centre for Competition Policy Faculty of Social Sciences > Research Groups > Behavioural Economics Faculty of Social Sciences > Research Groups > Economic Theory
Depositing User:	LivePure Connector
Date Deposited:	02 Oct 2025 09:30
Last Modified:	02 Oct 2025 09:30
URI:	https://ueaeprints.uea.ac.uk/id/eprint/100587
DOI:	isbn:9781802207729

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