Mechanisms employing fines and rewards may be introduced in multi-equilibrium situations to enforce a certain equilibrium. The mechanism does two things. First, it produces a signal disrupting the normal dynamics of repeated play; potentially encouraging agents to reconsider their expectations....

Social norms and conventions have formally been defined as pertaining to static sets of situations. In this paper, we introduce a slight variation of Cristina Bicchieri's definition, where the set of situations is dynamically determined by previous actions. To suggest how the definition may be...