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Greece and Germany’s game of chicken

Boehnke, Olaf, (2015), “Greece and Germany’s game of chicken”, European Council on Foreign Relations Commentary, 17 Ιουλίου

“We are both heading for the cliff. Who jumps first is the chicken” were the famous last words of James Dean’s opponent in the classic movie “Rebel Without A Cause”. The game of chicken is a standard model of conflict for two players in game theory. While game theorist and sometime finance minister Yanis Varoufakis has drawn all the attention for his ‘chicken’ negotiating approach, the real champion of this game of chicken has turned out to be Germany’s finance minister Wolfgang Schäuble. Many observers of the Greek crisis agree that it was Schäuble’s detailed Grexit proposal that forced Alexis Tsipras, who took over in this game from his co-pilot Varoufakis, to finally surrender and jump.

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