https://toarcheio.org To Archeio project site Mon, 20 Apr 2020 13:00:47 +0000 en-GB hourly 1 https://wordpress.org/?v=5.4.1 https://toarcheio.org/items/lessons-from-the-greek-crisis/ Tue, 16 Apr 2019 22:25:45 +0000 http://arc.local/items/lessons-from-the-greek-crisis/ Continued]]> There are two features of the Greek crisis that need explanation: the lopsided outcome where Greece did not achieve any of its stated goals; and the protracted negotiations. I explain these two features as results of two factors: Nested Games (the Greek prime minister was also involved in a game inside his own party); and incomplete information (the Greek government did not understand the weight of unanimity to change the status quo in the EU, and did the best it could to create a unanimity, of all the other countries, against it). The lessons from the crisis are two-sided: for the Greek side not to lose any more time in the application of the agreements (say, with elections); for the EU side to consider different ways of forming and aggregating preferences: having elections (with a wide EU constituency as opposed to national ones), and making decisions (eliminating the unanimity requirement).

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