Game Theory

Study of strategic choice where each actor's best move depends on the moves others make simultaneously or in sequence.

Specifications & Metrics

type

Methodology

introduced

1944

originator

John von Neumann and Oskar Morgenstern

Core Principles & Analysis

• Theory of Games and Economic Behavior (1944) put economics on formal strategic foundations.
• Nash equilibrium (1950) identifies strategy profiles that no player can improve by deviating alone.
• It now underpins auction design, oligopoly analysis, and mechanism design.

Sources

• Stanford Encyclopedia of Philosophy: Game Theory