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What game theory can tell us about the war in Ukraine

As economists specializing in behavioral economics and game theory, we teach strategic concepts from game theory to our business students. The same ideas can help us understand Russia’s current moves, predict its future behavior and derive the best strategies to achieve long-term goals.

By Anastassia Fedyk and David McAdams

How to Organize Reconstruction Aid for Post-War Ukraine

Before significant funds are committed to Ukraine’s reconstruction, it is important to determine who will control and direct the money and how the recovery will be structured. Internal and external transparency will be crucial, as well as planning for a project that could take years.
By Yuriy Gorodonichenko, Anastassia Fedyk, and Ilona Sologoub

What is Driving Western Firms to Leave Russia?

A growing number of U.S. and European firms have chosen to voluntarily cease or suspend their operations in Russia. Are these firms’ managers deciding to divest to help Ukraine and punish Russia? Or are they divesting to help their own firms, under pressure from investors? Our results suggest the latter.
By Anastassia Fedyk & Tetyana Balyuk

Strengthening Financial Sanctions against the Russian Federation

In this paper, we propose further financial sanctions to increase the cost to Russia’s invasion of Ukraine, based on further targeting two key vulnerabilities. The first targets Russia’s reliance on the U.S. Dollar and Western currencies as a reserve currency to back the Ruble. The second vulnerability is the Russian economy’s dependence on the Western financial system for a range of services.
By The International Working Group on Russian Sanctions

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