Schelling, Thomas Crombie (1921-2016), was an American economist who won the 2005 Nobel Prize in economic sciences. He shared the award with the Israeli and American mathematician Robert J. Aumann for their advances in the use of game theory. Game theory is a method of studying decision-making situations in which the choices of two or more individuals or groups influence one another.
Schelling used game theory to examine social interactions in a variety of areas, including business practices, political strategies, and international conflicts. In The Strategy of Conflict (1960), he wrote that nearly all multiperson decision-making situations involve both common and conflicting interests. Therefore, he believed that game theory could serve as a framework for analysis throughout the social sciences. Schelling’s work greatly influenced the study of conflict resolution and efforts to avoid war.
Schelling was born on April 14, 1921, in Oakland, California. In 1944, he received a bachelor’s degree in economics from the University of California at Berkeley. In 1951, he earned a Ph.D. in economics from Harvard University. Schelling taught economics at the University of Maryland and at Harvard. He wrote numerous books and articles on such topics as arms control, environmental policy, international trade, racial segregation, and ethical issues in business. Schelling died on Dec. 13, 2016.
See also Aumann, Robert John ; Game theory .
