In Honor of David Kreps, Winner of the John Bates Clark Medal

Abstract

David Kreps is the winner of the 1989 John Bates Clark Medal, given to “that American economist under forty who is adjudged to have made a significant contribution to economic thought and knowledge.” I will try to explain where Kreps's contributions fit in the food chain of economic ideas, why they have a high nutritional content, and why they should be in the diet of the common economist. I will arbitrarily divide this review into three major themes of Kreps's work: individual decision making, game theory (foundational and applied), and asset pricing.