Von Neumann was the first, however, to define mathematically cor-rectly the concept of an abstract, strategic game. In the early 1950s, John Nash generalized these results and provided the basis of the modern field. It historically dates back to the Talmud and Sun Tzu's writings. However, its contemporary codification is credited to John von Neumann and Oskar Morgenstern who, in 1944, published Theory of Games and Economic Behavior. 1.1. In fact, game theory was originally developed by the Hungarian-born American mathematician John von Neumann and his Princeton University colleague Oskar Morgenstern, a German-born American economist, to solve problems in economics. During the war, von Neumann's intellect tackled hydrodynamics, ballistics, meteorology, game theory, and statistics, applying mathematical rigor to practical problems in these fields. The book also gave birth to the idea of utility theory in economics. Sixtieth-Anniversary Edition Von Neumann’s book on Game theory said that many economic situations could be modelled as the outcome of a game between two or more players. A few basic concepts of game theory Today, game theory is applied to economics, law, political science, and sociology. The Contributions of John Von Neumann Introduction Often called a genius, John von Neumann made significant contributions in a wide range of issues. His work on mathematical physics won him praise as a major intellectual influence responsible for the emergence of game theory… Hungarian mathematician John von Neumann (1903 – 1957) was one of the more powerful scientific mind of the 20th century. about output. In order to understand the signifi-cance and potential of what von Neumann did, we need a brief introduction to the basics of game theory. Although game theory can be and has been used to analyze parlour games, its applications are much broader. John von Neumann and Oskar Morgenstern, Theory of Games and Economic Behavior. His works span from functional and numerical analysis to quantum mechanics, from set theory to game theory, as well as many other fields of pure and applied mathematics.