Game theory economists share Nobel prize
A pair of game theorists who defined chess-like strategies in politics and business that can be applied to arms races, price wars and actual warfare won the Nobel Prize in Economic Sciences on Monday.
Israeli-American Robert J. Aumann and U.S. citizen Thomas C. Schelling won the award for research on game theory, a branch of applied mathematics that uses models to study interactions between countries, businesses or people.
Game theory, devised in 1944 by John von Neumann and Oskar Morgenstern, is often used in a political or military context to explain conflicts between countries. More recently it has been used to map trends in the business world, ranging from how cartels set prices to how companies can better sell their goods and services in new markets.
Source: MSNBC.
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