The prisoner's dilemma describes a situation in which two parties act on an incentive to protect themselves at the expense of the other. Find out how it works in economics.

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

Human behavior drives the evolution of biological organisms in ways that can profoundly adversely impact human welfare. Understanding people's incentives when they do so is essential to identify ...

So you’re standing at the edge of a cliff, chained by the ankle to someone else. You’ll be released, and one of you will get a large prize, as soon as the other gives in. How do you persuade the other ...

In a recent artificial intelligence (AI) machine learning breakthrough in game theory, researchers solve a persistent problem with real-world applicability—for the better. At last month’s 34th ...

In its negotiations on the two key infrastructure bills, Congress members are utilizing the classic economic concept of game theory to outmaneuver one another. We look at what this federal ...

On March 19, 1956, The New York Times carried an interview with Matyas Rakosi, who was described as “Hungary’s ebullient Communist boss.” Rakosi said that his enemies had accused him of using “salami ...