Standard economic arguments assume that individual preferences satisfy particular axioms of choice (e.g. transitivity or acyclicity). At the same time, preferences are taken as given for purposes of analysis. However, since preferences are formed, the process of formation will affect the...

Robert Aumann and Thomas Schelling won the Nobel Prize in Economic Science in 2005. Their work in game theory shows two different approaches to understanding strategic interaction. Schelling's work on the strategic aspects of negotiations, focal points, and self-command is mathematically...