Credibility Problem

Economic Governance today: The Credibility Problem and the Clarity Problem

By Jens Prüfer

About 25 years ago, Avner Greif and his co-authors set out to study how the rise, mechanics, and decline of certain institutions in the European middle ages can be explained by the help of game theory (Greif 1989, 1993; Greif, Milgrom, and Weingast 1994). Soon it became...