Reinhard Selten

Reinhard Selten was a prominent German economist and a key figure in game theory, which studies strategic interactions among rational decision-makers. He is best known for his work on bounded rationality, challenging the idea that people always make perfectly rational choices. Selten developed concepts like "subgame perfection," which refines equilibrium analysis in games, emphasizing how players make decisions at every stage. His contributions helped advance understanding of human behavior in economics, earning him a Nobel Prize in 1994, alongside John Nash and Robert Shiller, for their insights into economic theory and strategic thinking.