Oskar Morgenstern

Oskar Morgenstern
Born	(1902-01-24)January 24, 1902 Görlitz, Kingdom of Prussia, German Empire
Died	July 26, 1977(1977-07-26) (aged 75) Princeton, New Jersey, U.S.
Citizenship	German Austrian (from 1925) American (from 1944)
Education	University of Vienna
Academic career
Field	Economics
Institution	Princeton University New York University Mathematica Policy Research
School or tradition	Austrian School
Doctoral advisor	Ludwig von Mises
Doctoral students	Martin Shubik Lionel W. McKenzie
Influences	Othmar Spann Carl Menger
Contributions	Game theory, mathematical economics

Oskar Morgenstern (January 24, 1902 – July 26, 1977) was a German-born economist. In collaboration with mathematician John von Neumann, he founded the mathematical field of game theory as applied to the social sciences and strategic decision-making, as well as making major contributions to decision theory (see von Neumann–Morgenstern utility theorem).^[1][2][3][4]

Companies he served as founder of co-founder included Market Research Corporation of America and the original Mathematica Inc.

Morgenstern was born in Görlitz in the Prussian Province of Silesia. His mother was said to be a daughter of Emperor Frederick III of Germany.^{[5][6][7][8][9]}

Morgenstern grew up in Vienna, Austria, where he also went to university. In 1925, he graduated from the University of Vienna and got his PhD in political science. From 1925 until 1928, he went on a three-year fellowship financed by the Rockefeller Foundation. After his return in 1928, he became a professor in economics at the University of Vienna until his visit to Princeton University in 1938. In 1935, Morgenstern published the article Perfect Foresight and Economic Equilibrium, after which his colleague Eduard Čech pointed him to an article of John von Neumann, Zur Theorie der Gesellschaftsspiele (1928). He also worked as an outside expert for the Economic and Financial Organization of the League of Nations, together with Bertil Ohlin and Jacques Rueff, supporting the EFO's work on economic depressions in the late 1930s.^[10]: 29

During Morgenstern's visit to Princeton University, Adolf Hitler took over Vienna during the Anschluss, and Morgenstern decided to remain in the United States. He became a member of the faculty at Princeton but gravitated toward the Institute for Advanced Study. There, he met von Neumann and they collaborated to write Theory of Games and Economic Behavior, published in 1944, which is recognized as the first book on game theory, a mathematical framework for the study of strategic structures which govern rational decision-making in certain economic, political, and military situations. In 2013, the University of Vienna relocated the Faculty of Business, Economics and Statistics and named the square Oskar-Morgenstern-Platz in his honor.

The collaboration between economist Morgenstern and mathematician von Neumann led to the birth of entirely new areas of investigation in both mathematics and economics. These have attracted widespread academic and practical interest since that time. In 1944, Morgenstern also became a United States citizen, and four years later he married Dorothy Young, with whom he had two children, Carl and Karin. In 1950, he was elected as a Fellow of the American Statistical Association.^[11] Morgenstern remained at Princeton as a professor of economics until his retirement in 1970, at which time he joined the faculty of New York University. Morgenstern wrote many other articles and books, including On the Accuracy of Economic Observations, and Predictability of Stock Market Prices with subsequent Nobel laureate Clive Granger.

Morgenstern died in Princeton, New Jersey in 1977. The archive of his published works and unpublished documents is held at Duke University.^[12]

In November 2012 a place in Alsergrund, Vienna was called "Oskar-Morgenstern-Platz"; it is the address of the Faculties of Economics and of Mathematics of the University of Vienna.

In the late 1950s^[13][14] "Oskar Morgenstern and several of his Princeton University colleagues" began a "small research organization."

Company names with which he, along with others, were involved^[15] as founders/co-founders included:

• Industrial Surveys Company, which later became Market Research Corporation of America
• Mathematica Inc.
• Mathematica Policy Research (MPR)

• Morgenstern, Oskar (1966) [1950]. On the accuracy of economic observations (2nd rev. ed.). Princeton, New Jersey: Princeton University Press.
• von Neumann, John; Morgenstern, Oskar (1955) [1944]. Theory of games and economic behaviour (3rd ed.). Princeton, New Jersey: Princeton University Press.
• Kemeny, John G.; Morgenstern, Oskar; Thompson, Gerald L. (1956). "A generalization of the von Neumann model of an expanding economy". Econometrica. 24 (2): 115–135. doi:10.2307/1905746. JSTOR 1905746. MR 0080573.
• Morgenstern, Oskar (1972). "Thirteen Critical Points in Contemporary Economic Theory: An Interpretation," Journal of Economic Literature 10, no. 4 (December): 1184

– reprinted in Selected Economic /writings by Oskar Morgenstern, Andrew Schotter, ed. (New York: New York University Press, 1976), p. 288.

• Morgenstern, Oskar (1959). While the Atomic Clock Ticks On – The Question Of National Defense.^[16]
• Morgenstern, Oskar; Granger, Clive W. J. (1970). Predictability of stock market prices. Lexington, Massachusetts: Lexington Books (D.C. Heath and Company).
• Morgenstern, Oskar; Thompson, Gerald L. (1976). Mathematical theory of expanding and contracting economies. Lexington Books. Lexington, Massachusetts: D. C. Heath and Company. pp. xviii, 277.
• Morgenstern, Oskar (1976). "The collaboration between Oskar Morgenstern and John von Neumann on the Theory of Games". Journal of Economic Literature 14, No. 3 (Sep., 1976), pp. 805–816

– reprinted in Theory of games and economic behaviour — Sixtieth anniversary edition. Princeton, New Jersey: Princeton University Press, p. 712. ISBN 0-691-13061-2.

• Shapley, D. (August 12, 1977). "Game theorist Morgenstern dies". Science. 197 (4304): 649. Bibcode:1977Sci...197..649S. doi:10.1126/science.197.4304.649. PMID 17776264.

Wikiquote has quotations related to Oskar Morgenstern.

• The Limits of Economics; William Hodge and Company, London, 1937
• Oskar Morgenstern Papers, 1866–1992 and undated, Rubenstein Library, Duke University
• Oskar Morgenstern's Contribution to the Development of the Theory of Games Archived 2010-06-13 at the Wayback Machine; Andrew Schotter, Center for Experimental Social Science
• Theory of Games and Economic Behavior; Princeton University Press, Princeton, 1944
• "Oskar Morgenstern (1902–1977)". The Concise Encyclopedia of Economics. Library of Economics and Liberty (2nd ed.). Liberty Fund. 2008.
• Biography of Oskar Morgenstern from the Institute for Operations Research and the Management Sciences
• Oskar Morgenstern (in German) from the archive of the Österreichische Mediathek