Lloyd Shapley: Architect of Game Theory and Nobel Laureate in Economics
Lloyd Shapley (2 June 1923 – 12 March 2016) was an American mathematician and economist. In 2012, he was jointly awarded the Nobel Prize in Economic Sciences.
Life and Career
He was born on 2 June 1923, in Cambridge, Massachusetts. He completed his undergraduate studies at Harvard University, where he developed a strong interest in mathematics. He then pursued his graduate studies at Princeton University, earning his Ph.D. in mathematics in 1953. During his time at Princeton, Shapley worked under the supervision of Albert W. Tucker, a prominent mathematician who introduced him to the field of game theory.
His work primarily focused on game theory and cooperative game theory. He made significant contributions to these fields, developing innovative concepts and models that have had a profound impact on various disciplines, including economics, mathematics, and computer science.
One of Shapley’s most notable contributions is the development of the Shapley value. This concept provides a method for fairly distributing the payoff or rewards of a cooperative game among its players. The Shapley value takes into account the contribution of each player and the different possible ways in which coalitions can be formed within the game. It has proven to be a fundamental tool in analyzing and understanding cooperative behavior.
Shapley also worked on the study of matching markets, particularly the stable matching problem. He collaborated with David Gale to propose the Gale-Shapley algorithm, also known as the deferred acceptance algorithm. This algorithm provides an efficient way to solve the stable matching problem, where agents with preferences need to be optimally paired with each other based on their preferences.
In addition to his theoretical contributions, Shapley also applied his research to real-world applications. He worked at the RAND Corporation, where he applied game theory to analyze strategic decision-making and cooperative behavior in various contexts, including military and economic settings. He died on 12 March 2016, in Tucson, Arizona.
Award and Legacy
In 2012, he was jointly awarded the Nobel Prize in Economic Sciences, along with Alvin E. Roth, for their contributions to the theory of stable allocations and the practice of market design. His contributions continue to influence the fields of mathematics, economics, and game theory. His work has provided fundamental insights into the analysis of strategic decision-making, cooperative behavior, and fair distribution mechanisms. Shapley’s legacy remains an inspiration for current and future generations of researchers in these areas.
Observer Voice is the one stop site for National, International news, Editor’s Choice, Art/culture contents, Quotes and much more. We also cover historical contents. Historical contents includes World History, Indian History, and what happened today. The website also covers Entertainment across the India and World.