Theory of Games together with Economic Behavior

Theory of Games as well as Economic Behavior, published in 1944 by Princeton University Press, is a book by mathematician John von Neumann together with economist Oskar Morgenstern which is considered a groundbreaking text that created the interdisciplinary research field of game theory. In the number one formation of its 60th anniversary commemorative edition from the Princeton University Press, the book is intended as "the classic produce upon which modern-day game idea is based."

Overview

The book is based partly on earlier research by von Neumann, published in 1928 under the German names "Zur Theorie der Gesellschaftsspiele" "On the impression of Parlor Games".

The derivation of Johann Pfanzagl in 1967. Savage extended von Neumann and Morgenstern's axioms of rational preferences to endogenize probability and throw it subjective. He then used Bayes' theorem to improving these sent probabilities in light of new information, thus linking rational choice and inference.