Crashes and the rules they brought · 1929–1950s
1944
Game theory
John von Neumann and Oskar Morgenstern publish Theory of Games and Economic Behavior.
Their 1944 book treated economic choices as strategic games, where each player's best move depends on what others do.
💡 Why it made sense then
Many decisions, from pricing to war, depend on predicting a rival's response.
Ideas it gave us
- 🏗️ Game theory
Game theory is the study of strategic decisions, where each player's best choice depends on what the others do. The prisoner's dilemma is its most famous example.
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