How does Jean Tirole use game theory in his research?
Game theory is fundamental to my approach. It allows me to formally model the strategic interdependence between economic agents. Whether it's a firm setting prices, a regulator designing a contract, or banks interacting in a financial market, game theory provides the framework to analyze their decisions, anticipate their reactions, and understand the resulting equilibrium outcomes. This rigorous modeling is essential for deriving clear policy implications.
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