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Brexit and Europe's future: A game theoretical approach

Author

Listed:
  • Busch, Berthold
  • Diermeier, Matthias
  • Goecke, Henry
  • Hüther, Michael
Abstract
Following the British decision to leave the European Union, the question arises as to how relations should be conducted going forward. The objective of the negotiations between Great Britain and the EU is to ensure which strategy is best - both for the British and the EU. Another important element is what long and short-term advantages can be obtained. Here, the authors will examine these questions from a game theoretical perspective. In any case, it is evident that the EU will benefit the most from an uncompromising approach to the negotiations in the long term, whatever the benefits in the short term.

Suggested Citation

  • Busch, Berthold & Diermeier, Matthias & Goecke, Henry & Hüther, Michael, 2016. "Brexit and Europe's future: A game theoretical approach," IW policy papers 18/2016, Institut der deutschen Wirtschaft (IW) / German Economic Institute.
    • Handle: RePEc:zbw:iwkpps:182016
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    File URL: https://www.econstor.eu/bitstream/10419/148940/1/875856403.pdf
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    Citations

    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Brexit: the egocentric framing error
      by chris in Stumbling and Mumbling on 2017-04-28 18:07:35

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    Cited by:

    1. Pitsoulis, Athanassios & Schwuchow, Soeren, 2018. "Though this be madness: A game-theoretic perspective on the Brexit negotiations," VfS Annual Conference 2018 (Freiburg, Breisgau): Digital Economy 181635, Verein für Socialpolitik / German Economic Association.

    More about this item

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • E65 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Studies of Particular Policy Episodes
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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