Game theory is a powerful tool for the disciplined analysis of interacting choices. Nevertheless, its use in empirical research is considered questionable since the standard assumptions of mathematical game theory seem to place exceedingly high information costs on real-life actors as well as on...

This paper continues the examination, begun in MPIFG Discussion Paper 89/9, of the validity of game-theoretic explanations in empirical social science research. Assuming that real actors with bounded rationality would be unable to cope with the explosive complexity of n-person games, discussion...

Eight years after the onset of the "Great Recession," the eurozone is deeply split between "Northern" EMU economies that seem to be doing reasonably well and "Southern" countries that continue to struggle with socioeconomic catastrophe. This paper argues that the continuing malaise is a...