Threats and Promises Framework
Influence others
The Threats and Promises Framework involves making conditional moves to influence others and achieve a desired outcome. This can be achieved by establishing a response rule, such as a threat or promise, to induce others to take a desired action.
- Make a conditional move to influence others
- Establish a response rule
- Ensure credibility of the threat or promise
- Identify the Desired OutcomeUnderstand what you want to achieve and what action you want others to take.Pro tipConsider the potential responses of others to the threat or promiseWarningBe aware of the potential risks and consequences of making a threat or promise
- Choose a Threat or PromiseSelect a threat or promise that will induce others to take the desired action.Pro tipConsider the potential costs and benefits of the threat or promiseWarningBe aware of the potential drawbacks and unintended consequences of the threat or promise
- Establish a Response RuleCommunicate the threat or promise clearly and establish a response rule.Pro tipConsider the potential responses of others to the threat or promiseWarningBe prepared for potential consequences and responses from others
The Parent's Threat
A parent threatens to punish their child for misbehavior.
OutcomeThe child is induced to behave as desired.
The Meet-the-Competition Clause
A company includes a meet-the-competition clause in their pricing strategy to ensure they remain competitive.
OutcomeThe company is able to maintain their market share and remain competitive.
Failure to Consider Potential Responses
Not considering the potential responses of others to the threat or promise can lead to unintended consequences.
Insufficient Credibility
If the threat or promise is not credible, it may not be effective in achieving the desired outcome.
The concept of threats and promises has been used throughout history, with examples such as parents threatening to punish their children for misbehavior. Game theory has formalized this concept, with Thomas Schelling developing the idea of changing the game as a central theme of game theory.
Source · BOOK
The Art of Strategy: A Game Theorist's Guide to Success in Business and Life