Game Theory & The Euro Crisis : Italy in strong position

Well I am not an expert on game theory but one of my friend is taking lectures on it. So it would be interesting to put across as majority of the world feel relaxed about the euro crisis after the last month submitt. But there are indications like the rise in the yield of Spain and the latest by two strategists David Woo and Athanasios Vamvakidis.

Using game theory to consider how the situation might evolve, they believe the crisis will boil down to a game of bluff between Italy and Germany in which neither country has an incentive to back down.

That doesn’t mean this would be the best outcome for either side; in-game theory, Continue reading “Game Theory & The Euro Crisis : Italy in strong position”