Sunday, May 28, 2006

Game Theory, More Abstract than You Think

Is game theory useful? Yes, you say, at least knowing it got you an A in your graduate micro course. May be, and just may be, working in this area may help you publish in one of those high-fashion magazines (a term coined by UCLA economic professor Axel Leijonhufvud) like JET or Econometrica one day.

OK let me try this, is game theory useful in the real world, like helping us make better business decisions...

Uuuu...Mmmm...Well....Let's see...I am sure that there are examples...but I cannot recall at the moment...

Those are the exact responses of a panel of game theory pros when confronted with such a question, read more here.

HT to Pete Klein for the pointer.

1 comment:

snowball said...

"Game theory is for proving theorems, not for playing games."

Reinhard Selten