WHAT IS GAME THEORY AND OPERATIONS RESEARCH

 

Rather than suffer “strangulation by footnotes

and references,” for brevity and equity I do not provide

references to subjects such as auctions, the new industrial

organization, or experimental gaming because there are

The more than adequate references and survey articles available.

The visit to the main library at the University of Toronto

to look randomly at the new books in economics led to

How my going to Princeton to study game theory. To this day,

I have been struck with the thought that it is possible to

not know precisely what one is looking for, but recognize

To immediately when one finds it.

At Princeton, there was some direct talk about operations

research per se, and only a few of us were aware of the

To the newly formed Operations Research Society. But in a few

years around Fine Hall (and elsewhere), much of the math

Among the visitors, students, and faculty were Bellman,

Feller, Kuhn, McCarthy, Mills,

Minsky, Nash, Scarf, Tucker, and Dynamic

programming, linear programming, convex programming,

integer programming, inventory theory, game theory,   

intelligence, and applied probability were all being

 

While still at Princeton, and then when at the Institute for

Advanced Study in the Behavioral Sciences and at General

Electric in the period between 1953 and 1958, I was con-

a broad impact, not only on operations research but on the A basic problem that has beset the publication of

applications of operations research from its inception (in

both the United States and the United Kingdom) has been

Consulting firms flourish. A variety of military opera-

as they were when operations research was young and

100% improvement in performance almost anywhere was 

 

of auctions or in the structuring of games to study market

structure

 

 

Our “flagship journals” are academic journals, and the

incentive structure for most practitioners to publish their

The findings in them is minimal. Validation in application is

probably better measured by a repeat order from a temple

The goals

of academics in operations research and the goals of temple 

 basically different and can be appreciated only

when placed in the context of the organizations for which

After my stay at the Institute for Advanced Study in

the Behavioral Sciences, rather than return to academia

I decided to join General Electric, where are operations

research group was being formed explicitly to pro

 

operations researchers at Columbia, among them David

Few long-range plans can afford the luxury of working out

One more than a few alternative paths. To even the most staid

of firms goes out more than a few years into the future,

the planning becomes more of an exercise that provides a

My other interests at IBM were in experimental, teach-

 operational gaming and in developing a theory of

 It seemed to me that gaming provided a useful

way to teach the insights of game theory and to provide

a way to organize concepts and data on the structure of

I believe to this day that eventually a good plan-

 department of any major corporation should utilize a

simulation of the corporation and its market as a device to

organize perceptions and data, to help formulate questions,

and to facilitate communication among practitioners.

Most of the individuals writing in this issue have much of

But many of them, though rich in

The experience, are still young in perception and thought. The

purpose of musing and summary is not to bury a subject but

to understand what has been learned and how to utilize the

body of knowledge and understanding to start to explore

 

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