ABSTRACT
Shaun Hargreaves Heap and Yanis Varoufakis [1995, p. 33] Game theory by itself is not meant to improve anyone’s understanding of economic phenomena. Game theory … is a tool of economic analysis, and the proper test is whether economic analyses that use the concepts and language of game theory have improved our understanding. Of course, there is an identification problem here. Without the concepts and language of game theory, essentially the same economic analyses may well have been carried out; game theory may be nothing more than window-dressing. Hence improvements in understanding that I may attribute in part to game theory may in fact have little or nothing to do with the theory.
