Source: EconLog
by Pierre Lemieux
“Mr. Trump has told the whole world and shown that, in trade negotiations, he will back down from his threats if the adversary resists. Indeed, many on Wall Street believe that financial markets have not tanked more because ‘Trump Always Chickens Out.’ It is virtually certain that, in the EU or even Chinese governments, some advisers to Ms. Van der Leyen or Mr. Xi know how to think of negotiations in terms of game theory and are not scared to tell their rulers what they may not wish to hear. Why are there no such advisers in Mr. Trump’s entourage?” (06/03/25)
https://www.econlib.org/taco-vs-the-game-theoretic-art-of-the-deal/