Editing Game theory (section)

==== Prize-winning achievements ====
In 1965, [[Reinhard Selten]] introduced his [[solution concept]] of [[Subgame perfect equilibrium|subgame perfect equilibria]], which further refined the Nash equilibrium. Later he would introduce [[trembling hand perfection]] as well. In 1994 Nash, Selten and [[John Harsanyi|Harsanyi]] became [[Nobel Memorial Prize in Economic Sciences|Economics Nobel Laureates]] for their contributions to economic game theory.

In the 1970s, game theory was extensively applied in [[biology]], largely as a result of the work of [[John Maynard Smith]] and his [[evolutionarily stable strategy]]. In addition, the concepts of [[correlated equilibrium]], [[Trembling hand perfect equilibrium|trembling hand perfection]] and [[Common knowledge (logic)|common knowledge]]{{efn|Although common knowledge was first discussed by the philosopher [[David Kellogg Lewis|David Lewis]] in his dissertation (and later book) ''Convention'' in the late 1960s, it was not widely considered by economists until [[Robert Aumann]]'s work in the 1970s.}} were introduced and analyzed.

In 1994, John Nash was awarded the Nobel Memorial Prize in the Economic Sciences for his contribution to game theory. Nash's most famous contribution to game theory is the concept of the Nash equilibrium, which is a solution concept for [[Non-cooperative game theory|non-cooperative games]], published in 1951. A Nash equilibrium is a set of strategies, one for each player, such that no player can improve their payoff by unilaterally changing their strategy.

In 2005, game theorists [[Thomas Schelling]] and [[Robert Aumann]] followed Nash, Selten, and Harsanyi as Nobel Laureates. Schelling worked on dynamic models, early examples of [[evolutionary game theory]]. Aumann contributed more to the equilibrium school, introducing equilibrium coarsening and correlated equilibria, and developing an extensive formal analysis of the assumption of common knowledge and of its consequences.

In 2007, [[Leonid Hurwicz]], [[Eric Maskin]], and [[Roger Myerson]] were awarded the Nobel Prize in Economics "for having laid the foundations of [[mechanism design]] theory". Myerson's contributions include the notion of [[proper equilibrium]], and an important graduate text: ''Game Theory, Analysis of Conflict''.<ref name=Myerson /> Hurwicz introduced and formalized the concept of [[incentive compatibility]].

In 2012, [[Alvin E. Roth]] and [[Lloyd Shapley|Lloyd S. Shapley]] were awarded the Nobel Prize in Economics "for the theory of stable allocations and the practice of market design". In 2014, the Nobel went to game theorist [[Jean Tirole]].