In principle, every social situation involves strategic interaction among the participants.
After preliminary work by a number of other distinguished mathematicians and economists, game theory as a systematic theory started with von Neumann and Morgenstern's book, 'Theory of Games and Economic Behavior,' published in 1944.
It is our common experience as human beings that the results of social forces seem to admit only of 'probabilistic' predictions.
In its first 30 years of existence, up to the mid 1970s, the practical applications of game theory were very limited, probably as a result of excessive preoccupation by game theorists with cooperative solution concepts.
I knew that as a pharmacy student I would obtain military deferment. As I was of Jewish origin, this meant that I would not have to serve in a forced labor unit of the Hungarian army.
One might argue that proper understanding of any social situation would require game-theoretic analysis.
My parents owned a pharmacy in Budapest, which gave us a comfortable living. As I was their only child, they wanted me to become a pharmacist. But my own preference would have been to study philosophy and mathematics.
In 1958, Anne and I returned to Australia, where I got a very attractive research position at the Australian National University in Canberra. But soon I felt very isolated because at that time game theory was virtually unknown in Australia.
In 1946, I re-enrolled at the University of Budapest in order to obtain a Ph.D. in philosophy with minors in sociology and in psychology.
