Game theory is concerned with formal analysis of interactive decision-making, where the outcome for each individual depends on decisions of all participants. Interactive decision-making underlies much of economic analysis. Indeed, game theory has found successful applications to a wide range of economic problems (adverse selection, bargaining, competition, cooperation, etc.).  It has become an indispensable part of the tool kit for economists. As Nobel Laureate Paul Samuelson once said, “To be literate in the modern age, you need to have a general understanding of game theory.”

Shandong University has recently established a research center for games and economic behavior (RCGEB), which is made up of a group of excellent scholars at home and abroad. RCGEB provides a platform for promoting advanced research in game theory and applications. The ultimate objective is to build the center as one of the world-class research institutions.  A laboratory is also being built to facilitate research towards the achievement of this objective.