Shubik

Martin Shubik (1926-2018) was an American economist and mathematical game theorist. He was the Seymour H. Knox Professor Emeritus of Mathematical Institutional Economics at Yale University.

Shubik is best known for his contributions to game theory, particularly in the areas of oligopoly theory, auction theory, and the study of strategic market games. He developed mathematical models to analyze competitive behavior in various economic scenarios. He was a pioneer in using experimental methods to test game-theoretic predictions.

One of his most notable contributions is the "Dollar Auction" game, a non-cooperative game illustrating the irrational escalation of commitment. In this game, players bid for a dollar, but both the highest and second-highest bidders must pay their bid, even though only the highest bidder wins the dollar. This often leads to players bidding more than a dollar in an attempt to avoid losing their initial investment.

Shubik authored and co-authored numerous books and articles on game theory, economics, and defense analysis. He was a fellow of the Econometric Society and a member of the National Academy of Sciences. His work has had a significant impact on the fields of economics, political science, and operations research.