It reminds us of our childhood, of chess and checkers, of children’s games. The word “game” has friendly, enjoyable associations. The choice of the name “theory of games” was brilliant as a marketing device.
Von Neumann was not only a genius in mathematics, he was also a genius in public relations. That’s a central question: Is game theory useful in a concrete sense or not? Game theory is an area of economics that has enjoyed fantastic public relations. What are the applications of game theory for real life? So you feel as if he will tell you the new ideas emerging etc in GT. He starts by saying much of game theory is based on the typical econ assumption of rationality. I was so surprised to read the interview that had to re-read it many times to be sure whether I have not read it wrong. He actually encourages people to write a book which shows limitations of game theory! He also talks about why so many Israelis take up game theory (because of Aumann effect) etc. Someone who is so famous for his game theory work actually feels it does not really have much practical usage.
I was just amazed to read this interview of Ariel Rubinstein.
