This column was written just after the first cabinet meeting of the English Prime Minister Boris Johnson. In it he attempted new negotiations with the EU through a "Brinkmanship" game - a sort of hostage game - where a no-deal Brexit on 31 October 2019 was taken as a credible threat. In the Grexit case, game theorist Varoufakis also played a similar game in which he based his winning strategy on the Eagles doctrine he had previously posed, derived from the famous latest lines from the equally famous hit Hotel California by the Eagles pop group: 'You can check out any time you like but you can never leave. Varoufakis eventually lost this game. However, the Eagles doctrine remained intact. The question is how the game will go for Johnson. The essence of this Brexit game is that it is a non-cooperative game. This fits in with the Anglo-Saxon view of the economy. Continental Europe is better suited to negotiate in terms of a cooperative game. This Rhineland model contrasts with the Anglo-Saxon model of the economy.
|Publication status||Published - 21 Aug 2019|