ECONOMICS REPORT - Work on 'Game Theory' Wins Nobel Prize fo

ECONOMICS¹ REPORT - Work on 'Game Theory' Wins Nobel Prize for Two Economists
By Mario Ritter

Broadcast: Friday, October 14, 2005

I'm Bob Doughty² with the VOA Special English Economics Report.

 
Robert Aumann, left, and Thomas Schelling
Thomas Schelling and Robert Aumann will share the Nobel Prize in economics this year. The two men are being honored for their work in developing an economic idea. It is called game theory.

Game theory began as the study of decision-making in competitive³ situations, like games. John von Neumann (pronounced: NOI-mahn) and Oskar Morgenstern linked the theory of games with economic activity more than sixty years ago.

In the nineteen fifties, John Nash developed an idea known as the "Nash equilibrium⁴." The Nash equilibrium is the point where all sides in a competitive situation believe they have been given the best offer they will ever get. He proved this with mathematical methods. Mister Nash won the Nobel Prize in economics with two other men in nineteen ninety-four.

Mister Schelling used the ideas of game theory to study real-life problems, such as the arms competition between the United States and the Soviet⁵ Union forty years ago. He was interested in what influenced negotiating⁶ groups. He showed how one side might decide to harm its interests for a short period of time to make gains over a longer period.

Mister Schelling also used game theory to show how people become divided by race. He found that divided societies can result even among persons mostly willing to live near people of another race.

Mister Aumann developed game theory mathematically so that it can be useful for different areas of study. He showed that peaceful cooperation can provide good results for all competitors in a game over a long period. This is true even among competitors with a temporary conflict of interest. Mister Auman also considered how reasonable decisions are made among groups. He showed that knowing what competitors know is important to decision-making.

The work of both men has influenced areas of study other than economics. International negotiators, military planners, business leaders and biologists use methods developed by Misters Schelling and Auman.

Mister Schelling, an American, is a retired⁷ professor of the University of Maryland. Mister Aumann is a citizen of both the United States and Israel. He is a retired professor of the Hebrew University of Jerusalem.

This VOA Special English Economics Report was written by Mario Ritter. I'm Bob Doughty.

1 economics   

n.经济学，经济情况

参考例句：

• He is studying economics,which subject is very important.他正在学习经济学，该学科是很重要的。
• One can't separate politics from economics.不能把政治与经济割裂开来。

2 doughty   

adj.勇猛的，坚强的

参考例句：

• Most of successful men have the characteristics of contumacy and doughty.绝大多数成功人士都有共同的特质：脾气倔强，性格刚强。
• The doughty old man battled his illness with fierce determination.坚强的老人用巨大毅力与疾病作斗争。

3 competitive   

adj.竞争的，比赛的，好竞争的，有竞争力的

参考例句：

• Some kinds of business are competitive.有些商业是要竞争的。
• These businessmen are both competitive and honourable.这些商人既有竞争性又很诚实。

4 equilibrium   

n.平衡，均衡，相称，均势，平静

参考例句：

• Change in the world around us disturbs our inner equilibrium.我们周围世界的变化扰乱了我们内心的平静。
• This is best expressed in the form of an equilibrium constant.这最好用平衡常数的形式来表示。

5 Soviet   

adj.苏联的，苏维埃的；n.苏维埃

参考例句：

• Zhukov was a marshal of the former Soviet Union.朱可夫是前苏联的一位元帅。
• Germany began to attack the Soviet Union in 1941.德国在1941年开始进攻苏联。

6 negotiating   

n. 谈判 动词negotiate的现在分词

参考例句：

• They were coerced into negotiating a settlement. 他们被迫通过谈判解决。
• We want to get all the parties back to the negotiating table. 我们想把有关各方拉回到谈判桌上来。

7 retired   

adj.隐退的，退休的，退役的

参考例句：

• The old man retired to the country for rest.这位老人下乡休息去了。
• Many retired people take up gardening as a hobby.许多退休的人都以从事园艺为嗜好。