Thus mindset and social-historical contexts of the decision makers are identified to be specificities that are decisive in strategizing, apart from military capacities and national interests (Lebow 1996). It’s about multiplayer games where people respond based on what they think the other person’s response will be. Schelling introduced the concept of ‘focal points’ in situations where two parties have to coordinate. The economist Thomas Schelling introduced the notion of a “focal point”, or Schelling point–a solution to a coordination problem that works not because it is a particularly good solution (although it helps), but because it is particularly conspicuous to the people involved. It is worth noting that focal points are dependent on social beliefs. Following my previous post on Thomas Schelling’s contributions to Game Theory, I have been reflecting on another key idea from his 1960 book ‘The Strategy of Conflict’. This focal-point effect opens the door for cultural and environmental factors to influence rational behavior. This focal-point effect opens the door for cultural and environmental factors to influence rational behavior. Schelling’s work on focal points is sometimes considered an early contribution to a field that would come to be known as behavioral economics.

During the Cold War, he produced several consequential ideas.

And when the venue is a large area without clear lines of sight, finding one another becomes a coordination game. These focal points, also called Schelling points after theorist Thomas Schelling who discovered them, provide an obvious target for coordination attempts. "Tom Schelling is master of the profound but simple. The focal-point effect, as this is known, thus shows how such factors influence decision making. Let’s talk about Schelling points. --Robert Aumann, Nobel Prize Winner in Economics, 2005 Focal points salience coordination games negotiations Thomas Schelling game theory rationality Concept of focal point framing concessions cases focal numbers arms control disagreement strategic stability nuclear test ban onsite inspections voting thresholds truth commissions turning points . As behavioral economics continues to work its way into the economics mainstream and talk of a renewed nuclear arms race is making headlines, Schelling’s insights about coordination and negotiation may prove to have been ahead of their time. In game theory, a focal point (also called Schelling point) is a solution that people will tend to use in the absence of communication, because it seems natural, special, or relevant to them.The concept was introduced by the Nobel Memorial Prize-winning American economist Thomas Schelling in his book The Strategy of Conflict (1960). Game theorists refer to this type of intuitive decision-making as “the Schelling point.” The son of a naval officer, Thomas Crombie Schelling was born in Oakland, California, on April 14, 1921. More Thomas Schelling (1921-2016) Thomas Schelling was one of the greatest game theorists, Nobel Laureate in 2005, and influential advisor for several U.S. presidents. The most important factor is that it be special. Such an equilibrium earns the fitting name of focal point.

Schelling introduced the concept of ‘focal points’ in situations where two parties have to coordinate. The other obvious way to bring cultural effects into economic analysis would be to A focal point (or Schelling point, as it has later been renamed) is a solution people will tend to choose when unable to communicate, because it … What makes a Schelling point? Schelling explained our remarkable ability to cut through this problem by using “focal points” – alternatives that are “salient” by being conspicuous, culturally or psychologically obvious. It is also known by the name Schelling point, in honor of the game theorist Thomas Schelling, who introduced the concept in his 1960 book The Strategy of Conflict. He earned a bachelor's degree in economics from UC Berkeley in 1944 and a doctorate in economics from Harvard University in 1951. On the one hand, he supported the Strategic Arms Limitation Talks (SALT) between the USA and the USSR. Likewise noon, classically considered the very middle of the day, is a focal point in time. Following my previous post on Thomas Schelling’s contributions to Game Theory, I have been reflecting on another key idea from his 1960 book ‘The Strategy of Conflict’. His concept of 'focal point' and his understanding of the importance of commitment have become cornerstones of game theory and its applications."