Drew Fudenberg

Drew Fudenberg is highly regarded for his foundational research in game theory, particularly his work on repeated games and the "folk theorem." He has spent decades explaining how cooperation can emerge in long-term strategic relationships despite individuals acting purely out of self-interest. He also co-authored one of the most widely used graduate-level game theory textbooks in the world.

Drew Fudenberg is a long-time professor of economics at the Massachusetts Institute of Technology (MIT). Before joining MIT, he held faculty positions at Harvard University and the University of California, Berkeley. His courses at MIT are heavily focused on microeconomic theory and strategic decision-making.

The folk theorem, heavily expanded upon by Fudenberg and his co-author David Levine, states that in infinitely repeated games, almost any outcome can be sustained as an equilibrium. This means that if players are patient enough and care about the future, they can use the threat of punishment to enforce cooperative behavior. It explains how businesses or individuals might avoid mutually destructive outcomes over time.

Drew Fudenberg co-authored the widely influential textbook "Game Theory" alongside Jean Tirole in 1991. The book is considered a definitive, rigorous text on the subject and is a staple in PhD programs for economics. Jean Tirole later went on to win the Nobel Prize in Economics, highlighting the caliber of Fudenberg's collaborators.