“In principle, every social situation involves strategic interaction among the participants. Thus, one might argue that proper understanding of any social situation would require game-theoretic analysis. But in actual fact, classical economic theory did manage to sidestep the game-theoretic aspects of economic behavior by postulating perfect competition, i. e., by assuming that every buyer and every seller is very small as compared with the size of the relevant markets, so that nobody can significantly affect the existing market prices by his actions.”

—  John Harsanyi

Source: "Games with Incomplete Information," 1997, p. 136

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John Harsanyi12
hungarian economist 1920–2000

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“Game theory is a theory of strategic interaction. That is to say, it is a theory of rational behavior in social situations in which each player has to choose his moves on the basis of what he thinks the other players’ countermoves are likely to be.”

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Source: "Games with Incomplete Information," 1997, p. 136

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“The solution of the most important problems of the theoretical social sciences in general and of theoretical economics in particular is thus, closely connected with the question of theoretically understanding the origin and change of 'organically' created social structures.”

Carl Menger (1840–1921) founder of the Austrian School of economics

Source: Investigations into the Method of the Social Sciences, 1883, p. 147

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“The existential attitude is one of involvement in contrast to a merely theoretical or detached attitude. “Existential” in this sense can be defined as participating in a situation, especially a cognitive situation, with the whole of one’s existence.”

Paul Tillich book The Courage to Be

Source: The Courage to Be (1952), pp. 123-124

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“A final aspect of all open access orders is Schumpeter’s notion of creative destruction, one of the most powerful descriptions of a competitive, open access economy. When Schumpeter wrote Capitalism, Socialism, and Democracy in the early 1940s, the economic theory of perfect competition among atomistic firms (i. e., firms too small to have market power) had come under sustained attack as unrealistic. Large and powerful economic organizations dominated the new economy, and their behavior did not match the textbooks. Despite this dominance, the economy produced historically unprecedented, sustained economic development. Schumpeter asked, How could large businesses that were supposed to choke off competition and growth nonetheless generate such spectacular productivity increases in a world that seemed ever more competitive?”

Douglass C. North (1920–2015) American Economist

Source: Violence and Social Orders (2009), Ch. 4 : Open Access Orders

“At present game theory has, in my opinion, two important uses, neither of them related to games nor to conflict directly. First, game theory stimulates us to think about conflict in a novel way. Second, game theory leads to some genuine impasses, that is, to situations where its axiomatic base is shown to be insufficient for dealing even theoretically with certain types of conflict situations… Thus, the impact is made on our thinking process themselves, rather than on the actual content of our knowledge.”

Anatol Rapoport (1911–2007) Russian-born American mathematical psychologist

Source: 1960s, Fights, games, and debates, (1960), p. 242; As cited in: Han Dorussen. " Min beste fagbok: Anatol Rapoport: Fights, Games, and Debates http://www.sv.ntnu.no/iss/issavisa/98-1/bestebok.htm" at sv.ntnu.no, 1998

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“What this book is about is a kind of analysis that is characteristic of a large part of the social sciences, especially the more theoretical part. That kind of analysis explores the relation between the behavior of individuals who compromise some social aggregate, and the characteristics of the aggregate.These situations, in which people's behavior or people's choices depend on the behavior or choices of other people, are the ones that usually don't permit any simple summation or extrapolation of the aggregates. To make that connection we usually have to look at the system of interaction between individuals and their environment, that is, between individuals and other individuals or between individuals and the collectivity.”

Thomas C. Schelling (1921–2016) American economist

Micromotives and Microbehavior (1978).

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“The most promising lines of development of theory in the sociological and most immediately related fields, particularly the psychological and cultural, therefore, seem to be two-fold. One major direction is the theoretical elaboration and refinement of structural-functional analysis of social systems, including the relevant problems of motivation and their relation to cultural patterns. In this process, the structure of social action provides a basic frame of reference, and aspects of it become of direct substantive importance at many specific points. The main theoretical task, however, is more than a refinement of the conceptual scheme of the presently reprinted book — it involves transition and translation to a different level and focus of theoretical systematization.”

Talcott Parsons (1902–1979) American sociologist

Preface second edition, 1949
The structure of social action (1937)

“[There will be movement toward] behavioral economics… [which] involves study of those aspects of men’s images, or cognitive and affective structures that are more relevant to economic decisions.”

Kenneth E. Boulding (1910–1993) British-American economist

Kenneth Boulding (1958) &quot;Contemporary Economic Research&quot;.  In Donald P. Ray (ed.). Trends in Social Science, pp. 9-26. as cited in: James Alm (2011) Testing Behavioral Public Economics Theories in the Laboratory http://econ.tulane.edu/RePEc/pdf/tul1102.pdf. Working paper. <br class="br">Alm proceeds by stating: &quot;Given the essential role of psychological insights in the field, together with the obvious truism that all economics concerns “behavior” in one form or another, a more descriptive name for the field is perhaps “cognitive economics”, as recognized early on by Boulding (1958).&quot; <br class="br">1950s

“It is the shortcomings of game theory (as originally formulated) which force the consideration of the role of ethics, of the dynamics of social structure, and of social structure and of individual psychology in situations of conflict.”

Anatol Rapoport (1911–2007) Russian-born American mathematical psychologist

p, vii (1974)
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“In the new pattern of thought we do not assume any longer the detached observer, occurring in the idealizations of this classical type of theory, but an observer who by his indeterminable effects creates a new situation, theoretically described as a new state of the observed system.”

Wolfgang Pauli (1900–1958) Austrian physicist, Nobel prize winner

"Matter" in Man's Right to Knowledge, 2nd series (1954), p. 10; also in Writings on Physics and Philosophy‎ (1994) edited by Charles Paul P. Enz and Karl von Meyenn
Context: In the new pattern of thought we do not assume any longer the detached observer, occurring in the idealizations of this classical type of theory, but an observer who by his indeterminable effects creates a new situation, theoretically described as a new state of the observed system. In this way every observation is a singling out of a particular factual result, here and now, from the theoretical possibilities, therefore making obvious the discontinuous aspect of physical phenomena.
Nevertheless, there remains still in the new kind of theory an objective reality, inasmuch as these theories deny any possibility for the observer to influence the result of a measurement, once the experimental arrangement is chosen. Therefore particular qualities of an individual observer do not enter into the conceptual framework of the theory.

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