Leonid Hurwicz (; August 21, 1917 – June 24, 2008) was a Polish-American
economist
An economist is a professional and practitioner in the social sciences, social science discipline of economics.
The individual may also study, develop, and apply theories and concepts from economics and write about economic policy. Within this ...
and
mathematician
A mathematician is someone who uses an extensive knowledge of mathematics in their work, typically to solve mathematical problems.
Mathematicians are concerned with numbers, data, quantity, structure, space, models, and change.
History
On ...
, known for his work in
game theory
Game theory is the study of mathematical models of strategic interactions among rational agents. Myerson, Roger B. (1991). ''Game Theory: Analysis of Conflict,'' Harvard University Press, p.&nbs1 Chapter-preview links, ppvii–xi It has appli ...
and
mechanism design
Mechanism design is a field in economics and game theory that takes an objectives-first approach to designing economic mechanisms or incentives, toward desired objectives, in strategic settings, where players act rationally. Because it starts a ...
. He originated the concept of
incentive compatibility
A mechanism is called incentive-compatible (IC) if every participant can achieve the best outcome to themselves just by acting according to their true preferences.
There are several different degrees of incentive-compatibility:
* The stronger d ...
, and showed how desired outcomes can be achieved by using incentive compatible mechanism design. Hurwicz shared the 2007
Nobel Memorial Prize in Economic Sciences
The Nobel Memorial Prize in Economic Sciences, officially the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel ( sv, Sveriges riksbanks pris i ekonomisk vetenskap till Alfred Nobels minne), is an economics award administered ...
(with
Eric Maskin
Eric Stark Maskin (born December 12, 1950) is an American economist and mathematician. He was jointly awarded the 2007 Nobel Memorial Prize in Economic Sciences with Leonid Hurwicz and Roger Myerson "for having laid the foundations of mechanism d ...
and
Roger Myerson) for his seminal work on mechanism design.
Hurwicz was one of the oldest
Nobel Laureate
The Nobel Prizes ( sv, Nobelpriset, no, Nobelprisen) are awarded annually by the Royal Swedish Academy of Sciences, the Swedish Academy, the Karolinska Institutet, and the Norwegian Nobel Committee to individuals and organizations who make out ...
s, having received the prize at the age of 90.
Hurwicz was educated and grew up in Poland, and became a refugee in the United States after Hitler
invaded Poland in 1939. In 1941, Hurwicz worked as a research assistant for
Paul Samuelson
Paul Anthony Samuelson (May 15, 1915 – December 13, 2009) was an American economist who was the first American to win the Nobel Memorial Prize in Economic Sciences. When awarding the prize in 1970, the Swedish Royal Academies stated that he "h ...
at the
Massachusetts Institute of Technology
The Massachusetts Institute of Technology (MIT) is a private land-grant research university in Cambridge, Massachusetts. Established in 1861, MIT has played a key role in the development of modern technology and science, and is one of the ...
and
Oskar Lange
Oskar Ryszard Lange (27 July 1904 – 2 October 1965) was a Polish economist and diplomat. He is best known for advocating the use of market pricing tools in socialist systems and providing a model of market socialism. He responded to the econo ...
at the
University of Chicago
The University of Chicago (UChicago, Chicago, U of C, or UChi) is a private research university in Chicago, Illinois. Its main campus is located in Chicago's Hyde Park neighborhood. The University of Chicago is consistently ranked among the b ...
. He was a research associate for the
Cowles Commission
The Cowles Foundation for Research in Economics is an economic research institute at Yale University. It was created as the Cowles Commission for Research in Economics at Colorado Springs in 1932 by businessman and economist Alfred Cowles. In 193 ...
between 1942 and 1946. In 1946 he became an associate professor of economics at
Iowa State College
Iowa State University of Science and Technology (Iowa State University, Iowa State, or ISU) is a public land-grant research university in Ames, Iowa. Founded in 1858 as the Iowa Agricultural College and Model Farm, Iowa State became one of the n ...
. Hurwicz joined the
University of Minnesota
The University of Minnesota, formally the University of Minnesota, Twin Cities, (UMN Twin Cities, the U of M, or Minnesota) is a public university, public Land-grant university, land-grant research university in the Minneapolis–Saint Paul, Tw ...
in 1951, becoming
Regents' Professor
Professors in the United States commonly occupy any of several positions of teaching and research within a college or university. In the U.S., the word "professor" informally refers collectively to the academic ranks of assistant professor, asso ...
of Economics in 1969, and Curtis L. Carlson Professor of Economics in 1989. He was
Regents' Professor
Professors in the United States commonly occupy any of several positions of teaching and research within a college or university. In the U.S., the word "professor" informally refers collectively to the academic ranks of assistant professor, asso ...
of Economics (
Emeritus
''Emeritus'' (; female: ''emerita'') is an adjective used to designate a retired chair, professor, pastor, bishop, pope, director, president, prime minister, rabbi, emperor, or other person who has been "permitted to retain as an honorary title ...
) at the University of Minnesota when he died in 2008.
Hurwicz was among the first economists to recognize the value of
game theory
Game theory is the study of mathematical models of strategic interactions among rational agents. Myerson, Roger B. (1991). ''Game Theory: Analysis of Conflict,'' Harvard University Press, p.&nbs1 Chapter-preview links, ppvii–xi It has appli ...
and was a pioneer in its application.
Interactions of individuals and institutions,
market
Market is a term used to describe concepts such as:
*Market (economics), system in which parties engage in transactions according to supply and demand
*Market economy
*Marketplace, a physical marketplace or public market
Geography
*Märket, an ...
s and
trade
Trade involves the transfer of goods and services from one person or entity to another, often in exchange for money. Economists refer to a system or network that allows trade as a market.
An early form of trade, barter, saw the direct excha ...
are analyzed and understood today using the models Hurwicz developed.
Personal life
Hurwicz was born in
Moscow
Moscow ( , US chiefly ; rus, links=no, Москва, r=Moskva, p=mɐskˈva, a=Москва.ogg) is the capital and largest city of Russia. The city stands on the Moskva River in Central Russia, with a population estimated at 13.0 million ...
,
Russia
Russia (, , ), or the Russian Federation, is a List of transcontinental countries, transcontinental country spanning Eastern Europe and North Asia, Northern Asia. It is the List of countries and dependencies by area, largest country in the ...
, to a family of
Polish Jews
The history of the Jews in Poland dates back at least 1,000 years. For centuries, Poland was home to the largest and most significant Ashkenazi Jewish community in the world. Poland was a principal center of Jewish culture, because of the lo ...
a few months before the
October Revolution
The October Revolution,. officially known as the Great October Socialist Revolution. in the Soviet Union, also known as the Bolshevik Revolution, was a revolution in Russia led by the Bolshevik Party of Vladimir Lenin that was a key moment ...
. Soon after Leonid's birth, the family returned to
Warsaw
Warsaw ( pl, Warszawa, ), officially the Capital City of Warsaw,, abbreviation: ''m.st. Warszawa'' is the capital and largest city of Poland. The metropolis stands on the River Vistula in east-central Poland, and its population is officia ...
.
Hurwicz and his family experienced persecution by both the
Bolshevik
The Bolsheviks (russian: Большевики́, from большинство́ ''bol'shinstvó'', 'majority'),; derived from ''bol'shinstvó'' (большинство́), "majority", literally meaning "one of the majority". also known in English ...
s and
Nazis
Nazism ( ; german: Nazismus), the common name in English for National Socialism (german: Nationalsozialismus, ), is the far-right totalitarian political ideology and practices associated with Adolf Hitler and the Nazi Party (NSDAP) in Na ...
,
as he again became a refugee when Germany invaded Poland in 1939. His parents and brother fled Warsaw, only to be arrested and sent to Soviet
labor camp
A labor camp (or labour camp, see spelling differences) or work camp is a detention facility where inmates are forced to engage in penal labor as a form of punishment. Labor camps have many common aspects with slavery and with prisons (especi ...
s. Hurwicz, who had graduated from
Warsaw University
The University of Warsaw ( pl, Uniwersytet Warszawski, la, Universitas Varsoviensis) is a public university in Warsaw, Poland. Established in 1816, it is the largest institution of higher learning in the country offering 37 different fields of ...
in 1938, at the time of Nazi invasion on
Poland
Poland, officially the Republic of Poland, is a country in Central Europe. It is divided into 16 administrative provinces called voivodeships, covering an area of . Poland has a population of over 38 million and is the fifth-most populous ...
was in London, moved to
Switzerland
). Swiss law does not designate a ''capital'' as such, but the federal parliament and government are installed in Bern, while other federal institutions, such as the federal courts, are in other cities (Bellinzona, Lausanne, Luzern, Neuchâtel ...
then to
Portugal
Portugal, officially the Portuguese Republic ( pt, República Portuguesa, links=yes ), is a country whose mainland is located on the Iberian Peninsula of Southwestern Europe, and whose territory also includes the Atlantic archipelagos of ...
and finally in 1940 he emigrated to the
United States
The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territorie ...
. His family eventually joined him there.
Hurwicz hired Evelyn Jensen (born October 31, 1923), who grew up on a
Wisconsin
Wisconsin () is a state in the upper Midwestern United States. Wisconsin is the 25th-largest state by total area and the 20th-most populous. It is bordered by Minnesota to the west, Iowa to the southwest, Illinois to the south, Lake M ...
farm and was, at the time, an undergraduate in economics at the
University of Chicago
The University of Chicago (UChicago, Chicago, U of C, or UChi) is a private research university in Chicago, Illinois. Its main campus is located in Chicago's Hyde Park neighborhood. The University of Chicago is consistently ranked among the b ...
, as his teaching assistant during the 1940s. They married on July 19, 1944
and later lived at a number of locations in
Minneapolis
Minneapolis () is the largest city in Minnesota, United States, and the county seat of Hennepin County. The city is abundant in water, with thirteen lakes, wetlands, the Mississippi River, creeks and waterfalls. Minneapolis has its origins ...
. They had four children: Sarah, Michael, Ruth and Maxim.
His interests included linguistics, archaeology, biochemistry and music.
His activities outside the field of economics included research in meteorology and membership in the
NSF
NSF may stand for:
Political organizations
*National Socialist Front, a Swedish National Socialist party
*NS-Frauenschaft, the women's wing of the former German Nazi party
*National Students Federation, a leftist Pakistani students' political gr ...
Commission on Weather Modification. When
Eugene McCarthy ran for president of the United States, Hurwicz served in 1968 as a McCarthy delegate from Minnesota to the
Democratic Party Democratic Party most often refers to:
*Democratic Party (United States)
Democratic Party and similar terms may also refer to:
Active parties Africa
*Botswana Democratic Party
*Democratic Party of Equatorial Guinea
*Gabonese Democratic Party
*Demo ...
Convention and a member of the Democratic Party Platform Committee. He helped design the '
walking subcaucus' method of allocating delegates among competing groups, which is still used today by political parties. He remained an active Democrat, and attended his
precinct caucus in February 2008 at the age of 90.
He was hospitalized in mid-June 2008, suffering from renal failure. He died a week later in Minneapolis.
Education and early academic career
Encouraged by his father to study law,
in 1938 Hurwicz received his
LL.M. degree from the
University of Warsaw
The University of Warsaw ( pl, Uniwersytet Warszawski, la, Universitas Varsoviensis) is a public university in Warsaw, Poland. Established in 1816, it is the largest institution of higher learning in the country offering 37 different fields of ...
, where he discovered his future vocation in economics class. He then studied at the
London School of Economics
, mottoeng = To understand the causes of things
, established =
, type = Public research university
, endowment = £240.8 million (2021)
, budget = £391.1 millio ...
with
Nicholas Kaldor
Nicholas Kaldor, Baron Kaldor (12 May 1908 – 30 September 1986), born Káldor Miklós, was a Cambridge economist in the post-war period. He developed the "compensation" criteria called Kaldor–Hicks efficiency for welfare comparisons (1939), d ...
and
Friedrich Hayek
Friedrich August von Hayek ( , ; 8 May 189923 March 1992), often referred to by his initials F. A. Hayek, was an Austrian–British economist, legal theorist and philosopher who is best known for his defense of classical liberalism. Haye ...
.
In 1939 he moved to
Geneva
Geneva ( ; french: Genève ) frp, Genèva ; german: link=no, Genf ; it, Ginevra ; rm, Genevra is the List of cities in Switzerland, second-most populous city in Switzerland (after Zürich) and the most populous city of Romandy, the French-speaki ...
where he studied at the
Graduate Institute of International Studies
Graduate may refer to:
Education
* The subject of a graduation, i.e. someone awarded an academic degree
** Alumnus, a former student who has either attended or graduated from an institution
* High school graduate, someone who has completed high ...
.
After moving to the United States he continued his studies at
Harvard University
Harvard University is a private Ivy League research university in Cambridge, Massachusetts. Founded in 1636 as Harvard College and named for its first benefactor, the Puritan clergyman John Harvard, it is the oldest institution of higher le ...
and the
University of Chicago
The University of Chicago (UChicago, Chicago, U of C, or UChi) is a private research university in Chicago, Illinois. Its main campus is located in Chicago's Hyde Park neighborhood. The University of Chicago is consistently ranked among the b ...
.
Hurwicz had no degree in economics. In 2007 he said, "Whatever economics I learned I learned by listening and learning."
In 1941 Hurwicz was a research assistant to
Paul Samuelson
Paul Anthony Samuelson (May 15, 1915 – December 13, 2009) was an American economist who was the first American to win the Nobel Memorial Prize in Economic Sciences. When awarding the prize in 1970, the Swedish Royal Academies stated that he "h ...
at the
Massachusetts Institute of Technology
The Massachusetts Institute of Technology (MIT) is a private land-grant research university in Cambridge, Massachusetts. Established in 1861, MIT has played a key role in the development of modern technology and science, and is one of the ...
and to
Oskar Lange
Oskar Ryszard Lange (27 July 1904 – 2 October 1965) was a Polish economist and diplomat. He is best known for advocating the use of market pricing tools in socialist systems and providing a model of market socialism. He responded to the econo ...
at the University of Chicago.
At
Illinois Institute of Technology
Illinois Institute of Technology (IIT) is a private research university in Chicago, Illinois. Tracing its history to 1890, the present name was adopted upon the merger of the Armour Institute and Lewis Institute in 1940. The university has prog ...
during the war, Hurwicz taught electronics to the
U.S. Army Signal Corps
)
, colors = Orange and white
, colors_label = Corps colors
, march =
, mascot =
, equipment =
, equipment_label =
...
.
From 1942 to 1944, at the
University of Chicago
The University of Chicago (UChicago, Chicago, U of C, or UChi) is a private research university in Chicago, Illinois. Its main campus is located in Chicago's Hyde Park neighborhood. The University of Chicago is consistently ranked among the b ...
, he was a member of the faculty of the Institute of Meteorology and taught statistics in the Department of Economics. About 1942 his advisors were
Jacob Marschak
Jacob Marschak (23 July 1898 – 27 July 1977) was an American economist.
Life
Born in a Jewish family of Kyiv, Jacob Marschak (until 1933 Jakob) was the son of a jeweler. During his studies he joined the social democratic Menshevik Party, ...
and
Tjalling Koopmans
Tjalling Charles Koopmans (August 28, 1910 – February 26, 1985) was a Dutch-American mathematician and economist. He was the joint winner with Leonid Kantorovich of the 1975 Nobel Memorial Prize in Economic Sciences for his work on the theory ...
at the Cowles Commission for Research in Economics at the University of Chicago,
now the
Cowles Foundation
The Cowles Foundation for Research in Economics is an economic research institute at Yale University. It was created as the Cowles Commission for Research in Economics at Colorado Springs in 1932 by businessman and economist Alfred Cowles. In 1939 ...
at
Yale University
Yale University is a private research university in New Haven, Connecticut. Established in 1701 as the Collegiate School, it is the third-oldest institution of higher education in the United States and among the most prestigious in the wo ...
.
Teaching and research
Hurwicz received a
Guggenheim Fellowship
Guggenheim Fellowships are grants that have been awarded annually since by the John Simon Guggenheim Memorial Foundation to those "who have demonstrated exceptional capacity for productive scholarship or exceptional creative ability in the ar ...
in 1945–1946.
In 1946 he became an associate professor of economics at
Iowa State College
Iowa State University of Science and Technology (Iowa State University, Iowa State, or ISU) is a public land-grant research university in Ames, Iowa. Founded in 1858 as the Iowa Agricultural College and Model Farm, Iowa State became one of the n ...
.
From January 1942 until June 1946, he was a research associate for the Cowles Commission. Joining full-time in October 1950 until January 1951, he was a visiting professor, assuming Koopmans' classes in the Department of Economics, and led the commission's research on theory of resource allocation.
He was also a research professor of economics and mathematical statistics at the
University of Illinois
The University of Illinois Urbana-Champaign (U of I, Illinois, University of Illinois, or UIUC) is a public land-grant research university in Illinois in the twin cities of Champaign and Urbana. It is the flagship institution of the Univer ...
, a consultant to the
RAND Corporation
The RAND Corporation (from the phrase "research and development") is an American nonprofit global policy think tank created in 1948 by Douglas Aircraft Company to offer research and analysis to the United States Armed Forces. It is financed ...
through the University of Chicago and a consultant to the
U.S. Bureau of the Budget.
Hurwicz continued to be a consultant to the Cowles Commission until about 1961.
Hurwicz was recruited by
Walter Heller
Walter Wolfgang Heller (27 August 1915 – 15 June 1987) was a leading American economist of the 1960s, and an influential adviser to President John F. Kennedy as chairman of the Council of Economic Advisers, 1961–64.
Life and career
Heller ...
to the University of Minnesota in 1951, where he became a professor of economics and mathematics in the School of Business Administration.
He spent most of the rest of his career there, but it was interspersed with studies and teaching elsewhere in the United States and Asia. In 1955 and again in 1958 Hurwicz was a visiting professor, and a fellow on the second visit, at
Stanford University
Stanford University, officially Leland Stanford Junior University, is a private research university in Stanford, California. The campus occupies , among the largest in the United States, and enrolls over 17,000 students. Stanford is consider ...
and there in 1959 published "Optimality and Informational Efficiency in Resource Allocation Processes" on mechanism design.
He taught at
Bangalore University
Bangalore University (BU) is a public state university located in Bangalore, Karnataka, India. The university is a part of the Association of Indian Universities (AIU), Association of Commonwealth Universities (ACU) and affiliated by Univer ...
in 1965 and, during the 1980s, at
Tokyo University
, abbreviated as or UTokyo, is a public research university located in Bunkyō, Tokyo, Japan. Established in 1877, the university was the first Imperial University and is currently a Top Type university of the Top Global University Project by ...
, People's University (now
Renmin University of China
The Renmin University of China (RUC; ) is a national key public research university in Beijing, China. The university is affiliated to the Ministry of Education, and co-funded by the Ministry and the Beijing Municipal People's Government.
RUC ...
) and the
University of Indonesia
The University of Indonesia ( id, Universitas Indonesia, abbreviated as UI) is a public university in Depok, West Java and Salemba, Jakarta, Indonesia. It is one of the oldest tertiary-level educational institutions in Indonesia (known as the D ...
. In the United States he was a visiting professor at Harvard (1969), at the
University of California, Berkeley
The University of California, Berkeley (UC Berkeley, Berkeley, Cal, or California) is a public land-grant research university in Berkeley, California. Established in 1868 as the University of California, it is the state's first land-grant u ...
(1976–1977), at
Northwestern University
Northwestern University is a private research university in Evanston, Illinois. Founded in 1851, Northwestern is the oldest chartered university in Illinois and is ranked among the most prestigious academic institutions in the world.
Charte ...
twice in 1988 and 1989, at the
University of California, Santa Barbara
The University of California, Santa Barbara (UC Santa Barbara or UCSB) is a Public university, public Land-grant university, land-grant research university in Santa Barbara County, California, Santa Barbara, California with 23,196 undergraduate ...
(1998), the
California Institute of Technology
The California Institute of Technology (branded as Caltech or CIT)The university itself only spells its short form as "Caltech"; the institution considers other spellings such a"Cal Tech" and "CalTech" incorrect. The institute is also occasional ...
(1999) and the
University of Michigan
, mottoeng = "Arts, Knowledge, Truth"
, former_names = Catholepistemiad, or University of Michigania (1817–1821)
, budget = $10.3 billion (2021)
, endowment = $17 billion (2021)As o ...
in (2002). He was a visiting Distinguished Professor at the
University of Illinois
The University of Illinois Urbana-Champaign (U of I, Illinois, University of Illinois, or UIUC) is a public land-grant research university in Illinois in the twin cities of Champaign and Urbana. It is the flagship institution of the Univer ...
in 2001.
![University of Minnesota-20031209](https://upload.wikimedia.org/wikipedia/commons/3/34/University_of_Minnesota-20031209.jpg)
Back at Minnesota, Hurwicz became chairman of the Statistics Department in 1961, Regents Professor of Economics in 1969, and Curtis L. Carlson Regents Professor of Economics in 1989.
He taught subjects ranging from theory to welfare economics, public economics, mechanisms and institutions and mathematical economics.
Although he retired from full-time teaching in 1988,
Hurwicz taught graduate school as professor emeritus most recently in the fall of 2006.
In 2007 his ongoing research was described by the University of Minnesota as "comparison and analysis of systems and techniques of economic organization, welfare economics, game-theoretic implementation of social choice goals, and modeling economic institutions."
Hurwicz's interests included mathematical economics and modeling and the
theory of the firm
The theory of the firm consists of a number of economic theories that explain and predict the nature of the firm, company, or corporation, including its existence, behaviour, structure, and relationship to the market. Firms are key drivers in econ ...
.
His published works in these fields date back to 1944.
He is internationally renowned for his pioneering research on economic theory, particularly in the areas of mechanism and institutional design and mathematical economics. In the 1950s, he worked with
Kenneth Arrow
Kenneth Joseph Arrow (23 August 1921 – 21 February 2017) was an American economist, mathematician, writer, and political theorist. He was the joint winner of the Nobel Memorial Prize in Economic Sciences with John Hicks in 1972.
In economics ...
on non-linear programming;
in 1972 Arrow became the youngest person to receive the Nobel Economics prize.
Hurwicz was the graduate advisor to
Daniel McFadden
Daniel Little McFadden (born July 29, 1937) is an American econometrician who shared the 2000 Nobel Memorial Prize in Economic Sciences with James Heckman. McFadden's share of the prize was "for his development of theory and methods for analyzi ...
,
who received the prize in 2000.
Earlier economists often avoided analytic modeling of economic institutions. Hurwicz's work was instrumental in showing how economic models can provide a framework for the analysis of systems, such as capitalism and socialism, and how the incentives in such systems affect members of society.
[ Hurwicz Lecture originally presented at the North American meetings of the ]Econometric Society
The Econometric Society is an international society of academic economists interested in applying statistical tools to their field. It is an independent organization with no connections to societies of professional mathematicians or statisticians. ...
, at the University of Minnesota
The University of Minnesota, formally the University of Minnesota, Twin Cities, (UMN Twin Cities, the U of M, or Minnesota) is a public university, public Land-grant university, land-grant research university in the Minneapolis–Saint Paul, Tw ...
on 2006-06-22. The theory of
incentive compatibility
A mechanism is called incentive-compatible (IC) if every participant can achieve the best outcome to themselves just by acting according to their true preferences.
There are several different degrees of incentive-compatibility:
* The stronger d ...
that Hurwicz developed changed the way many economists thought about outcomes, explaining why centrally planned economies may fail and how incentives for individuals make a difference in decision making.
Hurwicz served on the editorial board of several journals. He co-edited and contributed to two collections for
Cambridge University Press
Cambridge University Press is the university press of the University of Cambridge. Granted letters patent by Henry VIII of England, King Henry VIII in 1534, it is the oldest university press
A university press is an academic publishing hou ...
: ''Studies in Resource Allocation Processes'' (1978, with
Kenneth Arrow
Kenneth Joseph Arrow (23 August 1921 – 21 February 2017) was an American economist, mathematician, writer, and political theorist. He was the joint winner of the Nobel Memorial Prize in Economic Sciences with John Hicks in 1972.
In economics ...
) and ''Social Goals and Social Organization'' (1987, with David Schmeidler and Hugo Sonnenschein). His most recent articles were published in the journals "Economic Theory" (2003, with Thomas Marschak), "
Review of Economic Design" (2001, with Stanley Reiter) and "Advances in Mathematical Economics" (2003, with Marcel K. Richter). Hurwicz presented the Fisher-Schultz (1963), Richard T. Ely (1972), David Kinley (1989) and Colin Clark (1997) lectures.
Awards and honors
Memberships and honorary degrees
Hurwicz was elected a fellow of the
Econometric Society
The Econometric Society is an international society of academic economists interested in applying statistical tools to their field. It is an independent organization with no connections to societies of professional mathematicians or statisticians. ...
in 1947 and in 1969 was the society's president. Hurwicz was elected a Fellow of the
American Academy of Arts and Sciences
The American Academy of Arts and Sciences (abbreviation: AAA&S) is one of the oldest learned societies in the United States. It was founded in 1780 during the American Revolution by John Adams, John Hancock, James Bowdoin, Andrew Oliver, and ...
in 1965.
In 1974 he was inducted into the
National Academy of Sciences
The National Academy of Sciences (NAS) is a United States nonprofit, non-governmental organization. NAS is part of the National Academies of Sciences, Engineering, and Medicine, along with the National Academy of Engineering (NAE) and the Nati ...
and in 1977 was named a Distinguished Fellow of the
American Economic Association.
Hurwicz received the
National Medal of Science
The National Medal of Science is an honor bestowed by the President of the United States to individuals in science and engineering who have made important contributions to the advancement of knowledge in the fields of behavioral and social scienc ...
in 1990 in Behavioral and Social Science, presented to him by President of the United States
George H. W. Bush
George Herbert Walker BushSince around 2000, he has been usually called George H. W. Bush, Bush Senior, Bush 41 or Bush the Elder to distinguish him from his eldest son, George W. Bush, who served as the 43rd president from 2001 to 2009; pr ...
, "for his pioneering work on the theory of modern decentralized allocation mechanisms".
He served on the
United Nations
The United Nations (UN) is an intergovernmental organization whose stated purposes are to maintain international peace and international security, security, develop friendly relations among nations, achieve international cooperation, and be ...
Economic Commission in 1948 and the United States
National Research Council National Research Council may refer to:
* National Research Council (Canada), sponsoring research and development
* National Research Council (Italy), scientific and technological research, Rome
* National Research Council (United States), part of ...
in 1954. In 1964 he was a member of the
National Science Foundation
The National Science Foundation (NSF) is an independent agency of the United States government that supports fundamental research and education in all the non-medical fields of science and engineering. Its medical counterpart is the National I ...
Commission on Weather Modification. He was a member of the American Academy of Independent Scholars (1979) and a Distinguished Scholar of the
California Institute of Technology
The California Institute of Technology (branded as Caltech or CIT)The university itself only spells its short form as "Caltech"; the institution considers other spellings such a"Cal Tech" and "CalTech" incorrect. The institute is also occasional ...
(1984).
Hurwicz received six honorary doctorates, from
Northwestern University
Northwestern University is a private research university in Evanston, Illinois. Founded in 1851, Northwestern is the oldest chartered university in Illinois and is ranked among the most prestigious academic institutions in the world.
Charte ...
(1980), the University of Chicago (1993),
Universitat Autònoma de Barcelona
The Autonomous University of Barcelona ( ca, Universitat Autònoma de Barcelona; , es, Universidad Autónoma de Barcelona; UAB), is a public university mostly located in Cerdanyola del Vallès, near the city of Barcelona in Catalonia, Spain.
...
(1989),
Keio University
, mottoeng = The pen is mightier than the sword
, type = Private research coeducational higher education institution
, established = 1858
, founder = Yukichi Fukuzawa
, endowmen ...
(1993),
Warsaw School of Economics
SGH Warsaw School of Economics ( pl, Szkoła Główna Handlowa w Warszawie, ''SGH''[Universität Bielefeld
Bielefeld University (german: Universität Bielefeld) is a university in Bielefeld, Germany. Founded in 1969, it is one of the country's newer universities, and considers itself a "reform" university, following a different style of organization a ...]
(2004).
He was an honorary visiting professor of the
Huazhong University of Science and Technology
The Huazhong University of Science and Technology (HUST; ) is a public research university located in Guanshan Subdistrict, Hongshan District, Wuhan, Hubei province, China. As a national key university directly affiliated to the Ministry of E ...
School of Economics (1984).
Named for Hurwicz
First presented in 1950, the ''
Hurwicz criterion'' is thought about to this day in the area of decision making called "under uncertainty."
[ Original release: ] Abraham Wald
Abraham Wald (; hu, Wald Ábrahám, yi, אברהם וואַלד; – ) was a Jewish Hungarian mathematician who contributed to decision theory, geometry, and econometrics and founded the field of statistical sequential analysis. One of ...
published
decision functions that year. Hurwicz combined Wald's ideas with work done in 1812 by
Pierre-Simon Laplace
Pierre-Simon, marquis de Laplace (; ; 23 March 1749 – 5 March 1827) was a French scholar and polymath whose work was important to the development of engineering, mathematics, statistics, physics, astronomy, and philosophy. He summarized ...
. Hurwicz's criterion gives each decision a value which is "a weighted sum of its worst and best possible outcomes" represented as α and known as an index of pessimism or optimism.
Variations have been proposed ever since and some corrections came very soon from
Leonard Jimmie Savage
Leonard Jimmie Savage (born Leonard Ogashevitz; 20 November 1917 – 1 November 1971) was an American mathematician and statistician. Economist Milton Friedman said Savage was "one of the few people I have met whom I would unhesitatingly call a ge ...
in 1954.
These four approaches– Laplace, Wald, Hurwicz and Savage– have been studied, corrected and applied for over fifty years by many different people including John Milnor,
G. L. S. Shackle
George Lennox Sharman Shackle (14 July 1903 – 3 March 1992) was an English economist. He made a practical attempt to challenge classical rational choice theory and has been characterised as a "post-Keynesian", though he is influenced as well by ...
,
Daniel Ellsberg
Daniel Ellsberg (born April 7, 1931) is an American political activist, and former United States military analyst. While employed by the RAND Corporation, Ellsberg precipitated a national political controversy in 1971 when he released the ''Pent ...
,
R. Duncan Luce and
Howard Raiffa
Howard Raiffa (; January 24, 1924 – July 8, 2016) was an American academic who was the Frank P. Ramsey Professor (Emeritus) of Managerial Economics, a joint chair held by the Business School and Harvard Kennedy School at Harvard University. He w ...
, in a field some date back to
Jacob Bernoulli
Jacob Bernoulli (also known as James or Jacques; – 16 August 1705) was one of the many prominent mathematicians in the Bernoulli family. He was an early proponent of Leibnizian calculus and sided with Gottfried Wilhelm Leibniz during the Le ...
.
In 2010, the College of Liberal Arts at the
University of Minnesota
The University of Minnesota, formally the University of Minnesota, Twin Cities, (UMN Twin Cities, the U of M, or Minnesota) is a public university, public Land-grant university, land-grant research university in the Minneapolis–Saint Paul, Tw ...
launched the
Heller-Hurwicz Economics Institute, a global initiative created to inform public policy by supporting and promoting frontier economic research and by communicating findings to leading academics, policymakers, and business executives around the world. Funds raised by the Institute are used to attract and retain preeminent faculty and, in part, to support graduate student research.
The
University of Michigan
, mottoeng = "Arts, Knowledge, Truth"
, former_names = Catholepistemiad, or University of Michigania (1817–1821)
, budget = $10.3 billion (2021)
, endowment = $17 billion (2021)As o ...
has an endowed chair named for Hurwicz, the Leonid Hurwicz Collegiate Professor of Complex Systems, Political Science, and Economics, currently held by
Scott E. Page.
The ''Leonid Hurwicz Distinguished Lecture'' is given to the Minnesota Economic Association (as is the Heller lecture).
John Ledyard
John Ledyard (November 1751 – 10 January 1789) was an American explorer and adventurer.
Early life
Ledyard was born in Groton, Connecticut, in November 1751. He was the first child of Abigail Youngs Ledyard and Capt. John Ledyard Jr, son o ...
(2007),
Robert Lucas,
Roger Myerson,
Edward C. Prescott
Edward Christian Prescott (December 26, 1940 – November 6, 2022) was an American economist. He received the Nobel Memorial Prize in Economics in 2004, sharing the award with Finn E. Kydland, "for their contributions to dynamic macroeconomics: ...
,
James Quirk,
Nancy Stokey
Nancy Laura Stokey (born May 8, 1950) has been the Frederick Henry Prince Distinguished Service Professor of Economics at the University of Chicago since 1990 and focuses particularly on mathematical economics while recently conducting research a ...
and
Neil Wallace
Neil Wallace (born 1939) is an American economist and professor of economics at Penn State University. He is considered one of the main proponents of new classical macroeconomics in the field of economics.
Education
Wallace earned his BA in e ...
are among those who have delivered the lecture since it was inaugurated in 1992.
Nobel Prize in Economics
In October 2007, Hurwicz shared the
Nobel Memorial Prize in Economic Sciences
The Nobel Memorial Prize in Economic Sciences, officially the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel ( sv, Sveriges riksbanks pris i ekonomisk vetenskap till Alfred Nobels minne), is an economics award administered ...
with
Eric Maskin
Eric Stark Maskin (born December 12, 1950) is an American economist and mathematician. He was jointly awarded the 2007 Nobel Memorial Prize in Economic Sciences with Leonid Hurwicz and Roger Myerson "for having laid the foundations of mechanism d ...
of the
Institute for Advanced Study
The Institute for Advanced Study (IAS), located in Princeton, New Jersey, in the United States, is an independent center for theoretical research and intellectual inquiry. It has served as the academic home of internationally preeminent scholar ...
and
Roger Myerson of the
University of Chicago
The University of Chicago (UChicago, Chicago, U of C, or UChi) is a private research university in Chicago, Illinois. Its main campus is located in Chicago's Hyde Park neighborhood. The University of Chicago is consistently ranked among the b ...
"for having laid the foundations of
mechanism design theory
Mechanism design is a field in economics and game theory that takes an objectives-first approach to designing economic mechanisms or incentives, toward desired objectives, in strategic settings, where players act rationally. Because it starts a ...
." During a telephone interview, a representative of the Nobel Foundation told Hurwicz and his wife that Hurwicz was the oldest person to win the Nobel Prize. Hurwicz said, "I hope that others who deserve it also got it." When asked which of all the applications of mechanism design he was most pleased to see he said
welfare economics
Welfare economics is a branch of economics that uses microeconomic techniques to evaluate well-being (welfare) at the aggregate (economy-wide) level.
Attempting to apply the principles of welfare economics gives rise to the field of public econ ...
. The winners applied game theory, a field advanced by mathematician
John Forbes Nash
John Forbes Nash Jr. (June 13, 1928 – May 23, 2015) was an American mathematician who made fundamental contributions to game theory, real algebraic geometry, differential geometry, and partial differential equations. Nash and fellow g ...
, to discover the best and most efficient means to reach a desired outcome, taking into account individuals' knowledge and self-interest, which may be hidden or private.
Mechanism design has been used to model negotiations and taxation, voting and elections,
to design auctions such as those for communications bandwidth,
elections and labor talks
and for pricing stock options.
Unable to attend the Nobel Prize ceremony in Stockholm because of his poor health, Hurwicz received the prize in Minneapolis. Accompanied by Evelyn, his spouse of six decades, and his family, he was the guest of honor at a convocation held on the campus of the University of Minnesota presided over by university president
Robert Bruininks. Immediately following a live broadcast of the Nobel Prize awards ceremony,
Jonas Hafström, Swedish ambassador to the United States, personally awarded the Economics Prize to Professor Hurwicz.
Publications
* Exposition on
game theory
Game theory is the study of mathematical models of strategic interactions among rational agents. Myerson, Roger B. (1991). ''Game Theory: Analysis of Conflict,'' Harvard University Press, p.&nbs1 Chapter-preview links, ppvii–xi It has appli ...
classic.
*
*
*
::Also available as:
::and as:
*
*
*
*
* Cowles Commission Discussion Paper: Economics No. 2112
''(pdf)''.*
*
See also
*
List of economists
This is an incomplete alphabetical list by surname of notable economists, experts in the social science of economics, past and present. For a history of economics, see the article History of economic thought. Only economists with biographical artic ...
References
External links
Leonid Hurwicz Papers at Duke University* including the Nobel Lecture ''Who Will Guard the Guardians?''
* Soumyen Sikdar
Leonid Hurwicz (1917–2008): A Tribute Contemporary Issues and Ideas in Social Sciences, Vol 4, No 2 (2008)
*
*
*
*
*
*
Biography of Leonid Hurwiczfrom the Institute for Operations Research and the Management Sciences
{{DEFAULTSORT:Hurwicz, Leonid
1917 births
2008 deaths
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