Oskar Morgenstern’s work on The Theory of Games, Economic Behavior and with John von Neumann is his most well-known contribution. He is also known for his skepticism about economic measurement.
Doctor Daniel Morgensztern, an oncologist from Saint Louis, Missouri is affiliated to Barnes-Jewish Hospital.
Technical-Education Foundation Souza Marques Schools Of Medicine gave him his medical degree.
Who is Oskar Morgenstern?
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Oskar Morgenstern, a member of Austrian economics, developed many theories and research.
He published numerous works on issues such as the business cycle, prices, and the Depression of the 1930s.
After he moved to the United States in 1938, he began to work closely with mathematician John von Neumann on theories of predicting economic behavior.
The result of their collaboration was Theory of Games and Economics Behavior.
This book is widely recognized as the greatest contribution to sociology.
It also highlighted the power of mathematics to address problems in politics, economics and military strategy.
It was a breakthrough for the scientific community that has continued to grow in influence and impact over the last 70 years.
Oskar Morgenstern’s papers span 1866-1992. They include correspondence, notes, subject files and printed materials.
They include primarily published works by Morgenstern and his major co-authors, such as John von Neumann and Gerald L. Thompson, as well as support documents and statistics.
The Theory of Games and Economic Behavior
John von Neumann and Oskar Morgenstern co-wrote the magnum opus of applied math, Theory of Games and Economic Behavior (1944). It introduced game theory, which would revolutionize economics.
It also opened the way to a wide range of applications in the social sciences, from the optimal policy choices of presidential candidates to the salary negotiations of major league baseball players.
One important feature of perfectly competitive markets is that they are prone to parametric analysis–i.e., that is, they can be analyzed by identifying the combination of price and production quantity at which agents maximize profit.
But this feature also makes them susceptible to game theory, since it implies that each player’s utility function will predict which outcomes she prefers.
This means there is a mix strategy between each agent in a zero-sum two-player game.
Agents are not allowed to choose other options than maximizing their profit in a monopolistic market.
Game theory is able to be applied to these situations to determine the optimal strategies for each agent.
These are strategies that result in a single outcome and not a variety of outcomes for different agents.
The Accuracy and Usefulness of Economic Observations
The topic of the accuracy and validity of economic observations has been a subject that has been widely discussed throughout history. However, it is often ignored in modern economics.
Morgenstern says it’s important to keep in mind that scientific observation requires complex tools. It is important to determine the cause and magnitude of errors.
He also identifies several potential sources of error in economic observation, such as the desire to hide or lie about the truth, problems with classification or definition, and quality changes.
Morgenstern claims that economists should take these mistakes into consideration. This is especially true for econometric models that are used to predict economic events.
David R. Henderson
Henderson, an emeritus professor in economics at Monterey’s Naval Postgraduate School, California and a research associate at the Hoover Institution, is Henderson.
The Concise Encyclopedia of Economics, formerly The Fortune Encyclopedia of Economics) is his editor.
He has published scholarly articles and writings in publications such as The New York Times and The Chicago Tribune. He is a frequent guest on television and radio programs.
He has published over 300 articles and book chapters in academic journals, and is a contributing author to several books.
He is a regular contributor to the Library of Economics and Liberty’s economics blog, EconLog.
As an economist, Henderson is concerned with growth, inflation, unemployment, free trade, taxation, and price and rent controls.
His particular interests include the behavior of financial markets and price and supply curves.
