Game Theory

Political science professor Elinor Ostrom showed that common-pool resources, such as water supplies or fish, can be effectively managed collectively without government or private control.

But this is only possible if those using the resource are physically...

This is a key concept in modern financial theory used for valuing European options and employee stock options.

Investors can use an online options calculator to get results by adding an option's strike price, the underlying stock's price, the option's time to expiration, i...

The economic theory of expected utility maximization says that people will act out of rational self-interest. But psychologist Daniel Kahneman showed that it is incorrect.

• Common cognitive biases cause people to use faulty reasoning to make ...

• In 2001, George A. Akerlof, A. Michael Spence, and Joseph E. Stiglitz won the prize "for their analyses of markets with asymmetric information."
• Economic models predicated on perfect information are often misguided. In reality, one party usually has superior knowledge