Nobel Prize in Economics

The (sort-of) Nobel Prize in Economics has been announced. The contributions of one of the two, Robert Aumann, are almost purely mathematical work in game theory.

His most interesting idea is that of correlated equilibria. The usual definition of equilibrium in a non-cooperative game, Nash equilibrium, rules out certain kinds of cooperation, even when that cooperation is in the self-interest of each player. Correlated equilibria allow randomized strategies which rely on a random event that is known to both players. Some details about correlated equilibria can be found
here.

(As an aside, the Wikipedia entry for Aumann is unusually bad, so it’s a good candidate for updating, if anyone’s interested. There’s also no entry for correlated equilibrium.)

2 thoughts on “Nobel Prize in Economics

  1. We just covered correlated equilibria in my game theory class, so I feel I should be able to write the article. But I don’t know how to present the topic in any reasonably rigorous manner. If someone can give me some initial push I can try to write it. I don’t know any of the history though (although I guess I can find it somewhere).

  2. It’s Wikipedia. Write as much or as little as you feel comfortable. I’ve started plenty of articles with just a couple of sentences, and I or someone else eventually turns them into real articles.

    Let me know when you write something, and I’ll take a look at it.

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