Interesting piece from the Bruegel group on the costs of a no deal Brexit to the European Union and in particular Germany. This paper is an adaptation of work commissioned by the Bundestag (German parliament) and so would be instrumental in driving policy;
http://bruegel.org/wp-content/upload...-02-140119.pdf
This bit made me laugh;
Quote:
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In a chicken game (Maynard-Smith and Price, 1973; Rapaport and Chammah, 1966), two cars run at high speed towards each other. The driver who blinks first and pulls to the side, loses. But if neither driver blinks, the cars hit each other and both sides suffer damage. Game theory suggests that the driver in the weaker car would blink first because he would suffer the greatest damage. Yet, game theory is based on an assumption of the rationality of the drivers, which might not necessarily be an accurate description of the political reality of Brexit.
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