Wednesday, January 30, 2019

Theresa May's Brexit Gambit Is a Loser, Says Game Theory - Bloomberg

Theresa May's Brexit Gambit Is a Loser, Says Game Theory - Bloomberg





On Tuesday, the U.K. parliament made it clear that it doesn’t want the country simply to give up and stay in a customs union with the EU; it doesn’t want an extension of the Brexit process without a clear idea of what to do with the extension; and it doesn’t want to exit without a deal. It wants Prime Minister Theresa May to go back to the negotiating table with the EU and get a better deal (specifically, one that doesn’t land the U.K. in a permanent customs union with the EU to avoid a hard border in Ireland).
In more abstract terms, the parliament wants May to play the one-shot prisoner’s dilemma. In this game, both sides are prisoners and have the opportunity to cooperate or to defect (compromise on the Irish backstop or face a no-deal Brexit). 

No comments:

Post a Comment