The Nobel committee cited the work of Arrow and British economist John Hicks in two areas: general equilibrium theory, which seeks to explain how prices are set across an economy, and welfare theory, ...

Companies may use game theory to determine the Nash Equilibrium and see the benefit in their budgeting or pricing strategies. Game theory is the study of how and why players make decisions.

focusing on areas including social choice theory, risk bearing, medical economics, general equilibrium analysis, inventory theory, and the economics of information and innovation. He was one of the ...