IMPROVING COMPETITIVENESS AND TRADE BALANCE OF GREEK ECONOMY: A COOPETITIVE STRATEGY MODEL

In this work, we propose a coopetitive model applied to the Greek crisis, aimed both at improving the
competitiveness of the Greek productive system and rebalancing the current account balance of the country.
Our model of coopetition (based on normal form game theory) is conceived at a macro level, wherein
there are two players: Greece and SNC (the Surplus Northern Countries of the euro area). We suggest a model
that looks for a win-win solution. The win-win solution entails a cooperative bi-strategy in which SNC should
contribute to re-balance its trade surplus with respect to Greece and, in addition, SNC should provide a certain
amount of foreign direct investment (FDI) to improve the competitiveness and the growth in Greece. Thus we
find a transferable utility and properly coopetitive solution, convenient for all the players.