Nobel Prize Winners
The theories of these five men: John C. Harsanyi, John Nash, Reinhard Selten,

Robert W. Fogel, and Douglass C. North, made an abundant progress in the

Economic Sciences in America and the economy. For these great accomplishments,
these five were awarded the Noble Peace Prize in Economic Sciences in

1994(Harsanyi, Nash, Selten), and 1993(Forgel, North). The three economists who
was awarded the Noble Peace Prize in 1994 for their excellent work and progress
in game theory was know as pioneers in using games like chess and poker as the
foundation for understanding complex economic issues. This was precisely half a
century after John Von Neumann and Osar Morgenstern launched the field with the
publication of "The Theory of Games and Economic Behavior." "John F. Nash
of Princeton University(a American economists), John C. Harsanyi of the

University of California at Berkeley(a Hungarian economist), and Reinhard Selten
of the Rheinische Friedrich- Wilhelms-Universitat in Bonn(a German economists),
shared the award, and the $930,000 cash award for their achievements in
economics."1 The trios accomplishment portrayed the significance of Von

Neumann and Morgenstern\'s contribution to game theory, which was recognized by
economists and others almost immediately. The lessons they drew from homely
games like chess and poker had exemplified universal application to economic
situations in which the participants had the power to anticipate and affect
other participants\' actions. Harsanyi stated "it is a theory of strategic
interactions...of rational behavior in social situations in which each player
has to choose his moves on the basis of what he thinks the other players’
counter moves are likely to be"2 Economists did not have an immediate success
in applying their insights to a field whose preoccupation with the idea of"free competition" required that the ability of each particular participant
to influence outcomes be negligible. So instead, game theory found all kinds of
immediate applications in the 1950\'s to problems of the Cold War, everything
from airplane dog-fights to doctrines of massive retaliation. "In book

\'"Prisoner\'s Dilemma," writer William Poundstone records the heady
intellectual excitement around the Institute for Advanced Study at Princeton and

Rand Corp. in Santa Monica, Calif., which was where much of the early work was
done."3 Nash hinted the first formal breakthrough meanwhile he was still a
young instructor at the Massachusetts Institute of Technology. He succeeded in
generalizing a set of problems known to economists since the 1840\'s, when

Augustine Cournot began writing about what might happen when two big companies
collide with one another in the marketplace. Nash also formulated a universal"solution concept" for many-person \'"noncooperative" games (meaning
those in which has no outside authority assures that players stick to some
predetermined rules). His name was thus attached to the whole range of
possibilities that might arise from successfully seeing through a rival\'s
strategy, they have been called "Nash equilibria" ever since. "It was a
very deep achievement,"4 said Princeton\'s Avinash Dixit, who was among those
who nominated Nash for the prize. Nash accomplished many other things, including
introducing a formal theory of bargaining into economics (which the Swedes did
not mention in the main body of their citation). But he made his way mainly as a
pure mathematician, doing widely admired work, exhibiting many of the
eccentricities that are associated with the model of that professional type.

Though Thomas Schelling, a University of Maryland economist demonstrated how
many game theory concepts could be applied to economics. The awards were given
to Harsanyi, 74, and Selten, 64. Both researchers proved important mathematical
theorems while refining the concept of Nash equilibria, and Harsanyi in
particular has ventured into topics of philosophy. The two economists, Robert W.

Fogel and Douglass North, won the Nobel Prize in 1993 were known as pioneering
economic historians for economics. These two turned the theoretical and
statistical tools of modern economics on the historical past: on subjects
ranging from slavery and railroads to ocean shipping and property rights. Fogel,
a professor at the University of Chicago, often is described as the father of
modern econometric history. He’s especially noted for using careful empirical
work to overturn conventional wisdom. North, a professor at Washington

University in St. Louis, was honored as a pioneer in the "new" institutional
history. In the Nobel announcement, they specifically mention North’s research
in 1968 that showed how organizational changes played a greater role in
increasing productivity than did technical change. "The Cambridge native has
also written a series of books, including "The Rise of the Western World" in

1971 and "Structure and Change in Economic History," which set out with
clarity how the role of institutional change, and property rights, could be
expected to play in a rigorous theory of economic