. This can
continue in a virtually infinite progression. In this situation there is often a
considerable amount of uncertainty regarding the results of any decision.
These kinds of situation occur in all areas of economics, not just in managerial
economics. They are common in macroeconomic policy, labour economics,
financial economics and international economics. Game theory situations
also occur in politics, sociology, warfare, ‘games’ and sports, and biology,
which make the area a unifying theme in much analysis. Game theorists,
therefore, have come from many different walks of life, although the main
pioneers were von Neumann and Morgenstern,1 and Nash,2 who were essentially
mathematicians.