The release of $100bn in frozen assets will help the Iranian economy grow,but also leave it with less incentive to reform. The supreme leader is unlikely to allow for anything but the most superficial changes, says game theorist Amir BagherpourAs sanctions were lifted this past weekend following Iran’s implementation of the nuclear agreement with world powers, or President Hassan Rouhani again called for Iran to rely less on the sale of oil and to reform the economy. But according to an analysis of Iranian politics based on game theory,economic reform is unlikely during the rest of his first presidential term, which ends in 2017.
Using the principles of game-theory, and I evaluated the calculations and likely decisions of the main factions within Iran and determined the likely direction Iran is headed. Game theory is a subfield of micro-economics focused on the mathematical study of clash and cooperation between decision-makers. Outcomes are determined by calculating the payoffs stakeholders incur for supporting or opposing differing economic policies. Continue reading...
Source: theguardian.com