On Oct. 11, 1994, John Nash won the Nobel Prize in Economics for his work on the Nash Equilibrium, one of the foundational ideas of game theory.
Economics is the science of choice, and while much of economics today involves crunching numbers, an important part of the field continues to be understanding how and why we make the choices we do.
In addition, understanding how and why we make choices allows us to better anticipate structural ways in which we can influence people’s choices. Public Choice Theory, for instance, explores how incentives affect the decisions of politicians.
And behavioral economics explores ways of changing people’s behavior by creatively limiting their choices to steer them to “good” decisions.
- How might better understanding how we choose allow us to make better policies?
- In the video clip, Nash recognizes that it is important to take the goals of others into account when making our own choices. How does choosing force us to be concerned with the welfare of others?
21, Dec. 2001 Russell Crowe playing John Nash in a Beautiful Mind [Digitial photograph]. Retrieved from <google.com>.
18, June 2002 DVD cover to John Nash: a Beautiful Genius [Digital photograph]. Retrieved from <google.com>.