Economic Theories Of Harsanyi, Nash, Selten, Fogel, And North

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theory, which was recognized by economists and others almost immediately. The lessons they drew from homely games like chess and poker had exemplified universal application to economic situations in which the participants had the power to anticipate and affect other participants' actions. Harsanyi stated "it is a theory of strategic interactions...of rational behavior in social situations in which each player has to choose his moves on the basis of what he thinks the other players' counter moves are likely to be"
Economists did not have an immediate success in applying their insights to a field whose preoccupation with the idea of "free competition" required that the ability of each particular participant to influence outcomes be negligible.
So instead, game theory found all kinds of immediate applications in the 1950's to problems of the Cold War, everything from airplane dog-fights to doctrines of massive retaliation. "In book '"Prisoner's Dilemma," writer William Poundstone ...

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of the eccentricities that are associated with the model of that professional type.
Though Thomas Schelling, a University of Maryland economist demonstrated how many game theory concepts could be applied to economics. The awards were given to Harsanyi, 74, and Selten, 64. Both researchers proved important mathematical theorems while refining the concept of Nash equilibria, and Harsanyi in particular has ventured into topics of philosophy.
The two economists, Robert W. Fogel and Douglass North, won the Nobel Prize in 1993 were known as pioneering economic historians for economics. These two turned the theoretical and statistical tools of modern economics on the historical past: on ...

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