Rational Deterrence in an Imperfect World

Publisher Website
Google Scholar
Abstract
This paper considers the role of reputation and signaling in establishing deterrence. The cost-benefit calculations of rational deterrence are extended to allow for incomplete or imperfect information. The author uses requirements of a sequential equilibrium (and its refinements) to impose consistency restrictions on how strategic players signal a reputation for strength. This provides a way to interpret potentially misleading reputations and offers a resolution to the reputation paradox of Jervis.

This publication has 6 references indexed in Scilit: