photo: University of Maryland
Thomas C. Schelling Co-Recipient of the 2005 Nobel Prize in Economics
The Royal Swedish Academy of Sciences has awarded the 2005 Bank of Sweden Prize in Economic Sciences in Memory of Alfred Nobel to Thomas C. Schelling for having enhanced our understanding of conflict and cooperation through game-theory analysis.
"Against the backdrop of the nuclear arms race in the late 1950s, Thomas Schelling's book The Strategy of Conflict set forth his vision of game theory as a unifying framework for the social sciences. Schelling showed that a party can strengthen its position by overtly worsening its own options, that the capability to retaliate can be more useful than the ability to resist an attack, and that uncertain retaliation is more credible and more efficient than certain retaliation. These insights have proven to be of great relevance for conflict resolution and efforts to avoid war. Schelling's work prompted new developments in game theory and accelerated its use and application throughout the social sciences. Notably, his analysis of strategic commitments has explained a wide range of phenomena, from the competitive strategies of firms to the delegation of political decision power."
--The Royal Swedish Academy of Sciences
Thomas C. Schelling is Distinguished University Professor, Department of Economics and School of Public Affairs, University of Maryland and Lucius N. Littauer Professor of Political Economy, Emeritus, Harvard University.
The complete Nobel Foundation Press Release, announcing the award, is available online.