This paper discusses, from the perspective of Austrian economics, the merits and
drawbacks of game theory in economics. It begins by arguing that Austrians
have neglected game theory at their peril, and then argues that game theoretic
reasoning may be one way of modelling key Austrian insights, although some
aspects of game theory doesn’t square easily with Austrian economics. However,
a major stumbling block for an Austrian acceptance of game theory may lie in
the traditional Austrian resistance to formal methods.