Month: August 2016

Nobel Prize-winning Game Theory Solutions to International Conflict

The Strategy of Conflict pic
The Strategy of Conflict
Image: amazon.com

The head of Financial Research, Training & Consulting, LLP, Dr. Antonios (Tony) Antoniou previously engaged as professor of finance at Durham University in the United Kingdom. Dr. Antonios Antoniou has a strong interest in finance and banking systems, and is particularly drawn to the way in which economic interests can be a vital tool in conflict resolution.

In 2005, a pair of researchers spanning the University of Maryland and the Hebrew University of Jerusalem earned a Nobel Prize in economics for employing game theory in examining conflicts between corporations and nations. Game theory is an interactive analytical framework that provides a way of evaluating strategies ranging from wars to international trade agreements.

The scholars’ groundbreaking work examined how cooperation is successfully enacted among certain groups of countries and organizations while others remain conflict prone. They built on research extending to the 1950s and Prof. Thomas C. Schelling’s classic book The Strategy of Conflict (1981), which illustrates how significantly worsening one’s options can strengthen one’s competitive position, and that maintaining ability to retaliate is often more vital than resisting attack.

Seen through a Cold War lens, these insights had an outsized role in defining efforts to avoid nuclear war and negotiate an end to seemingly intractable conflicts.

Euro Zone Economy Sluggish Despite Growth Measures

Euro Zone Economy pic
Euro Zone Economy
Image: economist.com

Dr. Antonios (Tony) Antoniou has a background as finance professor with Durham University, where he was responsible for oversight of strategic planning and curriculum development within the Business School. With a longstanding interest in economic prosperity and the globalization process, Dr. Antonios Antoniou follows economic development trends among Euro currency-linked countries.

With the European Union having been buffeted by a number of crises, from Greece’s debt issues to an influx of refugees from war-torn Syria, the 19-strong Eurozone is continuing to experience low growth. A February 2016 Economist survey noted that GDP still lagged behind pre-financial crisis 2008 levels, while the U.S. economy had surged ahead by 10 percent.

The Economist painted this as particularly dire, considering the positive effect that an oil price collapse had had in driving consumer spending growth, which is seen as a pathway toward recovery. Eurozone sluggishness has also resisted measures by the European Central Bank to spark growth through a policy of negative interest rates and quantitative easing, which involves printing money to purchase financial assets. Despite these macro-level efforts, stock markets are unsure of their footing, and exports of key products to emerging markets (for example, German luxury cars to China) have been dwindling.