What computer science can teach economics
Computer scientists have spent decades developing techniques for answering a single question: How long does a given calculation take to perform? Constantinos Daskalakis, an assistant professor in MIT’s Computer Science and Artificial Intelligence Laboratory, has exported those techniques to game theory, a branch of mathematics with applications in economics, traffic management — on both the Internet and the interstate — and biology, among other things. By showing that some common game-theoretical problems are so hard that they’d take the lifetime of the universe to solve, Daskalakis is suggesting that they can’t accurately represent what happens in the real world.Game theory is a way to mathematically describe strategic reasoning — of competitors in a market, or drivers on a highway or predators in a habitat. In the last five years alone, the Nobel Prize in economics has twice been awarded to game theorists for their analyses of multilateral treaty negotiations, price...