As a professor of game theory, Yanis Varoufakis, Greece's new finance
minister, has spent many hours showing his students how the study of
strategic interactions can help explain the behaviour of consumers and
businesses.
But as he seeks to secure a good deal for Athens
during fraught talks with Greece's eurozone partners, Mr Varoufakis
faces the challenge of translating these theoretical insights into a
winning negotiating strategy.
The ultimate prize is a reduction of
Greece's towering debt mountain, which stands at more than 175 per cent
of gross domestic product. There is also a risk, however: if the
negotiations break down, Athens could lose the eurozone safety net
around its shaky public finances and banks, potentially stumbling into a
chaotic exit from the single currency.
Varoufakis faces challenge of turning games theory into winning strategy - FTENG - euro2day.gr
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