Abstract:

The aim of the paper is to analyze the Brexit negociations, using the game theory. The paper uses the scenarios identified in most literature review regarding Brexit, highlights the diverging interests between and within UK and EU and uses a 2x5 payoffs matrix to identify the best, the second best and the worst scenario.

On 23.06.2016, UK voted to leave European Union, nine months later, on 29.03.2017  trigged the article 50 of the Lisabon Treaty, therefore the negociation for Brexit started. The day when UK will actually leave EU will be 29.03.2019, unless UK and all the EU countries will agree to extend the deadline. To foresee the result of Brexit negociations is a hard task, but we might conduct an analysis on the possible post-Brexit deal. Although it is less than two years since the vote and less than two years before Leaving Day, we can trace Brexit literature even before the Brexit vote.