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Crisis in the Euro area: coopetitive game solutions as new policy tools

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  • Carfì, David
  • Schilirò, Daniele

Abstract

The crisis within the euro area have become frequent during 2010. First was the Greek economy to face a default problem of its sovreign debt, in November it was Ireland who has been in a serious financial situation at the verge of collapse causing difficulties to the euro. In this contribution we focus on the Greek crisis and we suggest, through a model of coopetition based on game theory and conceived at a macro level, feasible solutions in a cooperative perspective for the divergent interests which drive the economic policies in Germany and Greece, with the aim of improving the position of Greece, Germany and the whole euro area, also making a contribution to expand the set of macroeconomic policy tools. By means of our general analytical framework of coopetition, we show the strategies that could bring to feasible solutions in a cooperative perspective for Germany and Greece,where these feasible solutions aim at offering a win-win outcome for both countries, letting them to share the pie fairly within a growth path represented by a non-zero sum game. A remarkable analytical result of our work consists in the determination of the win-win solution by a new selection method on the transferable utility Pareto boundary of the coopetitive game.

Suggested Citation

  • Carfì, David & Schilirò, Daniele, 2010. "Crisis in the Euro area: coopetitive game solutions as new policy tools," MPRA Paper 31891, University Library of Munich, Germany, revised 26 Jun 2011.
    • Handle: RePEc:pra:mprapa:31891
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    References listed on IDEAS

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    1. Daniele Schilirò, 2007. "Knowledge, Learning, Networks and Performance of Firms in Knowledge-Based Economies," CRANEC - Working Papers del Centro di Ricerche in Analisi economica e sviluppo economico internazionale crn0702, Università Cattolica del Sacro Cuore, Centro di Ricerche in Analisi economica e sviluppo economico internazionale (CRANEC).
    2. Stephan Danninger & Fred Joutz, 2008. "What Explains Germany's Rebounding Export Market Share?," CESifo Economic Studies, CESifo Group, vol. 54(4), pages 681-714, December.
    3. Jean Pisani-Ferry & Adam Posen, . "The euro at ten- the next global currency?," Books, Bruegel, number 303.
    4. Daniele Schilirò, 2010. "Jean Pisani-Ferry and Adam S. Posen. 2009. The Euro at Ten: The next global currency? (Washington D.C.: Peterson Institute for International Economics, Bruegel)," The Review of International Organizations, Springer, vol. 5(1), pages 101-105, March.
    5. Alberto Alesina & Silvia Ardagna, 2010. "Large Changes in Fiscal Policy: Taxes versus Spending," NBER Chapters, in: Tax Policy and the Economy, Volume 24, pages 35-68, National Bureau of Economic Research, Inc.
    6. von Hagen, Jurgen & Strauch, Rolf R, 2001. "Fiscal Consolidations: Quality, Economic Conditions, and Success," Public Choice, Springer, vol. 109(3-4), pages 327-346, December.
    7. Olivier Blanchard & Giovanni Dell'Ariccia & Paolo Mauro, 2010. "Rethinking Macroeconomic Policy," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 42(s1), pages 199-215, September.
    8. Adam S. Posen & Jean-Pisani Ferry (ed.), 2009. "Euro at Ten: The Next Global Currency?, The," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 4303, April.
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    Cited by:

    1. Schilirò, Daniele, 2015. "Mediterraneo ed Unione Europea tra migrazioni e crescita sostenibile [Mediterranean and European Union between migration and sustainable growth]," MPRA Paper 75603, University Library of Munich, Germany.
    2. Carfì, David & Schilirò, Daniele, 2011. "A framework of coopetitive games: applications to the Greek crisis," MPRA Paper 78089, University Library of Munich, Germany.
    3. David Carf`i & Daniele Schilir`o, 2012. "Global Green Economy and Environmental Sustainability: a Coopetitive Model," Papers 1205.2872, arXiv.org.
    4. Carfì, David & Schilirò, Daniele, 2012. "A coopetitive model for the green economy," Economic Modelling, Elsevier, vol. 29(4), pages 1215-1219.
    5. Schilirò, Daniele, 2013. "Mediterraneo: migrazioni e sviluppo economico [Mediterranean: migrations and economic development]," MPRA Paper 72745, University Library of Munich, Germany.
    6. David CARFÌ & Emanuele PERRONE, 2011. "Game Complete Analysis Of Bertrand Duopoly," Theoretical and Practical Research in the Economic Fields, ASERS Publishing, vol. 2(1), pages 4-21.
    7. Daniela Baglieri & David Carf`i & Giovanni Battista Dagnino, 2012. "Asymmetric R&D Alliances and Coopetitive Games," Papers 1205.2878, arXiv.org.
    8. David CARFI & Caterina FICI, 2012. "The Government-Taxpayer Game," Theoretical and Practical Research in the Economic Fields, ASERS Publishing, vol. 3(1), pages 13-25.
    9. Schilirò, Daniele, 2012. "The crisis of euro’s governance: institutional aspects and policy issues," MPRA Paper 40861, University Library of Munich, Germany.

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    More about this item

    Keywords

    European Monetary Union; Coopetitive Games; Macroeconomic Policy; Bargaining solutions;
    All these keywords.

    JEL classification:

    • F40 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - General
    • D7 - Microeconomics - - Analysis of Collective Decision-Making
    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

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