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.

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.

• In 1994 Nash, Selten and Harsanyi became Economics Nobel Laureates for their contributions to economic game theory.
• Non-cooperative games are those where participants make non-binding agreements. They base their decisions on how they think the other participants will behav...

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

• 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