Nexon: Right on Motivations… Outcome Pending

by on 2013-01-13 in Duck- 2 Comments

Me:

And, in fact, bargaining theory suggests that [abandoning the “platinum coin” option] strengthens Obama’s hand.

Krugman:

Meanwhile, I get calls. The White House insists that it is absolutely, positively not going to cave or indeed even negotiate over the debt ceiling — that it rejected the coin option as a gesture of strength, as a way to put the onus for avoiding default entirely on the GOP.

 

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  • anonymouse

    All depends on how you look at the BATNAs… is having a trillion dollar coin a good alternative to an agreement or a bad alternative?

  • http://duckofminerva.org/ Dan Nexon

    It depends on what you mean by “agreement” and what the probability of the outcomes are, no?