The Euro Crisis – Game theory

Economic relations in the euro zone amount to a game of chicken. Like car drivers aiming directly at one another, governments are challenging their counterparts to flinch first and give in. Unfortunately, the economic study of strategic behavior — also known as game theory — suggests that if you play chicken too many times, you will eventually crash the proverbial car.

Few months back I did a post Italy was in strong position according to the game theory Continue reading “The Euro Crisis – Game theory”