Economy & Business, Volume 12, 2018

Abstract: Cyprus and Greece are of immense geo-economic, strategic and environmental importance within the Mediterranean region. At the same time, negotiations over the delimitation of maritime boundaries between adjacent states usually involve controversies, cooperative actions, or dispute settlements. Behaviors of stakeholders, who might otherwise be prone to contribute to improvements and achieve a win–win situation, sometimes end up at zero-sum games or in worse conditions for all parties. Game theory can recognize and construe the behaviors of parties to exclusive economic zone and continental shelf problems and describe the results of interactions of different parties who are pursuing their own objectives in the evolution of a negotiation’s setting. Its strategic relevance can be easily perceived if noted that Greece and Cyprus jointly share a common border with another ten countries, out of which with eight common sea borders also exist. Furthermore, if the aforementioned are combined with the current European energy network projects & prospects in the region, we have just described the pillars of probably the most dynamic entrepreneurial and diplomacy framework that will shape the future in this region for the first half of the century. The aim of this working paper is to analyze from an entrepreneurial perspective the opportunities and challenges for offshore energy, which consists an emerging Blue Economy sector with comparative advantages and enormous growth potential for the Greek and Cypriot island economy.