In: Economics
What does Schelling mean by the interdependence of commitments? What does it tell us about how we should conduct foreign policy?
The notion that credibility is important in international politics,
and maintaining it requires following through on threats and
commitments to establish a reputation for resolve, has been
standard diplomatic savoir-faire for decades, with its most
influential articulation in the work of Thomas Schelling. According
to a new consensus it also is wrong; credibility is linked
exclusively to the relative capabilities and interests a state can
bring to bear. The new consensus was invoked to criticize the Obama
administration's coercive strategy against Syrian chemical weapons
use in 2013. This article revisits Schelling to determine whether
critics have an accurate depiction of coercive diplomacy theory.
The analysis show that many of Schelling's specific arguments
related to American–Soviet Cold War rivalry were mistakenly offered
as general statements about reputation in all coercive bargaining
encounters. A more nuanced interpretation stresses commitment of
reputation operating within the complexity of the particular
bargaining situation. Reputations are relevant but do not determine
credibility in international politics; they matter more, relative
to other factors, in iterated encounters (and the expectation of
future crises) between the same two actors, a situation that
approximates Schelling's ‘continuous negotiation’, as well as
across fundamentally similar crises between an adversary and a
third party. This qualified position was missing in the debate over
Syrian chemical weapons in 2013, and should be embraced to better
manage tense diplomatic relationships and periodic crises with
other potentially hostile world powers. Schelling's work shows that
reputation can be an ingredient for peace, and not merely a
pretense for war.Thomas Schelling’s The Strategy of Conflict
carries significant behavioral implications which have been
overlooked by economic readers. I argue that these implications are
central to Schelling’s vision of game theory, that they fit well
with recent advances in experimental psychology and behavioral
economics, and provide a comprehensive framework that can inform
research on strategy. In my view, Schelling develops a
non-mathematical approach to strategy which anticipates on
Gigerenzer and Selten’s “ecological rationality” program. This
approach maps the processes involved in strategic reasoning and
highlights their reliance on the particular information structure
of interactive social environments. Building on this approach, I
model strategy as a heuristic form of reasoning that governs the
way in which individuals search for and provide cues in situations
of mutually contingent choice. I conclude by examining how the
reference to ecological rationality can help clarify Schelling’s
contribution to game theory and outline potential avenues of
research into strategic reasoning and interaction. This project
presents Schelling’s metaphysics as a power-based system and
explores its implications for his conception of freedom. I draw
parallels between Schelling’s ontology and contemporary
pan-dispositionalism, arguing that Schelling’s philosophy
highlights problems which apply to all pan-dispositionalist
accounts. A power-based ontology provides the space to hold a
libertarian conception of freedom but alone is insufficient, as
demonstrated by the failure of Schelling’s Naturphilosophie to
account for human freedom. This highlights problems with accounting
for individuation and control which arise directly from Schelling’s
power-based ontology, and will therefore arise for any similar
ontology. I take the changes in Schelling’s system as reflecting
his attempts to tackle these problems.
The reading of Schelling I advance thus identifies a strong
continuity: although there are changes in Schelling’s system I
argue that these are motivated by his enduring interest in a
cluster of problems surrounding the relationship between freedom
and system, and his willingness to attempt new solutions to these
problems. I provide an account of Schelling’s philosophical
progression between the Naturphilosophie and the Freiheitsschrift,
drawing attention to the centrality of powers throughout the
changes in his system.
I then present my reading of Schelling’s Freiheitsschrift, arguing
that the dominant interpretations in the literature fail to capture
Schelling’s account of freedom here, as they overlook the
centrality of reciprocity for Schelling’s philosophy. I demonstrate
that by paying careful attention to Schelling’s conception of the
natural process we can provide a libertarian reading of the
Freiheitsschrift which makes sense of this text as a progression,
rather than a break from, Schelling’s previous works.Underlying
many of the arguments to stay out of the Syria crisis was the
notion that following through on red-line threats would not enhance
American credibility (in Syria or elsewhere) because the scholarly
evidence did not support such a claim. This left aside the issue of
whether responding to Assad's chemical weapons use or intervening
in Syria more generally was in and of itself in the national
interests of the United States (that is, whether intervention would
have been justified even in the absence of the initial red-line
threat). In this sense, it was not the critics political
preferences but an objective invocation of extant academic
work—what Christopher Fettweis has characterized as the ‘mountain
of research from political science to suggest that [reputation] is
an illusion, that credibility earned today does not lead to
successes tomorrow and therefore is never worth fighting for’—that
determined their policy advice.15 In this most pressing of issue
areas—the application of military force in support of coercive
diplomacy—the knowledge gap between practitioners and scholars must
be closed. As Fettweis argues elsewhere. The dilemma regarding
relative power capabilities that provide an
effective deterrent is another issue that has dominated the con›ict
and
deterrence research. In strategic studies, the emphasis has been on
the
precarious nature of deterrence brought up by the advent of
nuclear
weapons. The idea that the strategic balance between
superpowers,
forged by their second-strike capabilities, assured deterrence
stability,
found both its advocates and skeptics. Critics of the MAD
strategy
pointed to its inadequacy to respond to limited attacks or solve
the
credibility problem. Instead of relying on the strategic balance of
terror, they advocated nuclear superiority as a means of solving
the credibility problem of nuclear threats in a nonsuicidal manner.
The disagreement over the adequate balance of nuclear power that
can provide an effective deterrent roughly corresponds to one of
the major debates
about the relationship between power distribution and war in the
general international relations literature. The realists are
divided over the question of whether power balance or imbalance is
more likely to lead to deterrence failure and ultimately to war.
However, whether considered in the nuclear or nonnuwar clear
setting, the analysis of relative power alone can provide only
partial understanding of con›ict behavior. It misses the
motivational aspect or, in other words, the important factor of
each side’s willingness to ‹ght over an issue. An asymmetry of
motivation, for instance,can reverse the impact of capabilities on
the probability of war.