Robert Aumann: 2005 Nobel Prize in Economics
Presented by Saffia and Fadi
Guesses and predictions are the basis of human interaction throughout the world. This can go from predicting the outcome of a simple game of chess or game of cards to foreseeing the conclusion of a drawn out war. Because of these two comparisons, war is interpreted to be as simple to understand as chess is or chess is as complex as war. Oddly enough, this is just a fraction of the fundamentals to game theory.
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What kind of struggles did Aumann face?
Well in the beginning when he was just a kid in college, he was concentrating both on his religious studies and academic studies at the same time, while having to commute from far (I believe Brooklyn). So after his first year, he couldn’t take the stress anymore and decided to stall his religious studies, which his parents didn’t mind. Later as he continued to study mathematics, he was very interested in knot theory, but he used to believe there was no value to them because it was labeled as pure math. It wasn’t until he grandson asked him for clarification for class while he was doing his grandson was doing his doctorate degree.
I guess another struggle was when his son died at war, but he used his death as sort of a factor to his work. In a way, he overcame most of struggles in a positive way.
What was Aumann’s relationship to the economist he won the Nobel prize with?
Both of them, Robert Aumann and Thomas Schelling, actually only met once before they received their prize and met again for their joint interview!
Is this similar to a capitalist vs communist way of thinking?
Game theory would be more related to a capitalist way of thinking, if we had to really relate game theory to capitalism/communism.
Did Schelling and Aumann’s different approaches compliment each other? Did they intentionally split up work based upon their specific interests and approaches?
Well they didn’t really work together, which is why I think they had different approaches. They only knew about each other based on their articles and work, not at any personal level.
Do you think these personal tragedies inspired him to incorporate the human element into the game theory mathematics?
Personally, I think his son’s death was only a tipping point and motivation to continue on with his research!
Did Schelling and Aumann’s different approaches help or hurt their research? Did they split up work based upon their personal interests and approaches?
Well they didn’t really work together, which is why I think they had different approaches. They only knew about each other based on their articles and work, not at any personal level.
How difficult is it to map human interactions into mathematics?
Hmm good question, however, I can’t really answer that as I am still wondering that too.
So game theory. It seems pretty complex. Since it is fairly modern, would you consider it one of the most complex theories of applied mathematics?
I am not an expert on complex math theories. However, when I read Dr. Aumann’s publications, I had great trouble understanding his research. There is a lot of jargon in applied math, especially when economics theories are involved.
Was there any opposition to game theory?
No, there was no opposition to game theory. It helps predict the result of conflicts ranging from entertainment games to wars.
Did being an immigrant affect Aumann’s academic career?
He attended a Yeshiva high school, so he didn’t face any discrimination there. In fact, that was where he met his fantastic math teacher, Mr. Gansler, who inspired him to love math. There was no information on whether or not he faced discrimination at either CCNY or MIT.
How is game theory relevant in modern economics?
I am not really sure, but I saw Dr. Strangelove, a movie that implements game theory. It’s actually really good!
Does he continue to do research today?
He is not as active in his research as he was in the past. Currently, he mentors students and younger professors at the Hebrew University, Jerusalem, Israel.
Aumann’s Nobel lecture concerns war and peace…how are we (or how are not) applying his theories in our current international situations?
Well Aumann discussed mostly the consequences and conclusions so I would think that game theory is always being used in international situations to a certain extent even without each side knowing. The only thing is, to me it is not being applied or not being applied fairly when one side is at a HUGE disadvantage.