Oskar Morgenstern

Oskar Morgenstern

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Oskar Morgenstern was a German-born Austrian-School economist. He, along with John von Neumann
John von Neumann
John von Neumann was a Hungarian-American mathematician and polymath who made major contributions to a vast number of fields, including set theory, functional analysis, quantum mechanics, ergodic theory, geometry, fluid dynamics, economics and game theory, computer science, numerical analysis,...

, helped found the mathematical field of game theory
Game theory
Game theory is a mathematical method for analyzing calculated circumstances, such as in games, where a person’s success is based upon the choices of others...

 (see von Neumann–Morgenstern utility theorem
Von Neumann–Morgenstern utility theorem
In 1947, John von Neumann and Oskar Morgenstern exhibited four relatively modest axioms of "rationality" such that any agent satisfying the axioms has a utility function...

).

Morgenstern was born in Görlitz
Görlitz
Görlitz is a town in Germany. It is the easternmost town in the country, located on the Lusatian Neisse River in the Bundesland of Saxony. It is opposite the Polish town of Zgorzelec, which was a part of Görlitz until 1945. Historically, Görlitz was in the region of Upper Lusatia...

, Germany. His mother was said to be an illegitimate daughter of Emperor Frederick III
Frederick III, German Emperor
Frederick III was German Emperor and King of Prussia for 99 days in 1888, the Year of the Three Emperors. Friedrich Wilhelm Nikolaus Karl known informally as Fritz, was the only son of Emperor William I and was raised in his family's tradition of military service...

 of Germany.

He was educated in Vienna
Vienna
Vienna is the capital and largest city of the Republic of Austria and one of the nine states of Austria. Vienna is Austria's primary city, with a population of about 1.723 million , and is by far the largest city in Austria, as well as its cultural, economic, and political centre...

, and was a recipient of a three year fellowship financed by the Rockefeller Foundation
Rockefeller Foundation
The Rockefeller Foundation is a prominent philanthropic organization and private foundation based at 420 Fifth Avenue, New York City. The preeminent institution established by the six-generation Rockefeller family, it was founded by John D. Rockefeller , along with his son John D. Rockefeller, Jr...

. When Adolf Hitler
Adolf Hitler
Adolf Hitler was an Austrian-born German politician and the leader of the National Socialist German Workers Party , commonly referred to as the Nazi Party). He was Chancellor of Germany from 1933 to 1945, and head of state from 1934 to 1945...

 took over Vienna through the Anschluss
Anschluss
The Anschluss , also known as the ', was the occupation and annexation of Austria into Nazi Germany in 1938....

, Morgenstern was in the United States and decided it would be a good idea to stay. He became a member of the faculty at Princeton University
Princeton University
Princeton University is a private research university located in Princeton, New Jersey, United States. The school is one of the eight universities of the Ivy League, and is one of the nine Colonial Colleges founded before the American Revolution....

, but gravitated toward the Institute for Advanced Study
Institute for Advanced Study
The Institute for Advanced Study, located in Princeton, New Jersey, United States, is an independent postgraduate center for theoretical research and intellectual inquiry. It was founded in 1930 by Abraham Flexner...

. His first book was "Economic Prediction". In 1944, he and von Neumann co-wrote Theory of Games and Economic Behavior
Theory of Games and Economic Behavior
Theory of Games and Economic Behavior, published in 1944 by Princeton University Press, is a book by mathematician John von Neumann and economist Oskar Morgenstern which is considered the groundbreaking text that created the interdisciplinary research field of game theory...

, recognized as the first book on game theory. Morgenstern also wrote the book "On the accuracy of economic observations". He applied game theory to business
Business
A business is an organization engaged in the trade of goods, services, or both to consumers. Businesses are predominant in capitalist economies, where most of them are privately owned and administered to earn profit to increase the wealth of their owners. Businesses may also be not-for-profit...

. He died in Princeton, New Jersey
Princeton, New Jersey
Princeton is a community located in Mercer County, New Jersey, United States. It is best known as the location of Princeton University, which has been sited in the community since 1756...

, in the United States.

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