Jack Hirshleifer: a Nobel prize left unbestowed

Abstract

Jack Hirshleifer (1925–2005) contributed to investment theory, information economics, conflict, and bioeconomics, clarified the foundations of investment and capital theory in the spirit of Fisher, and made basic contributions to the analysis of covariance risk, gambling and insurance, the Modigliani–Miller Theorem, and public investment through a focus on time, uncertainty and information. He formulated new models of public goods, added to understanding of contest success functions, and explained the paradox of power. He developed a general equilibrium approach to conflict jointly encompassing production, exchange, appropriation and defense. He analyzed the emotions as guarantors of threats and promises, proposed alternatives to the tit-for-tat strategy, considered the bioeconomic causes of war, and investigated the truthful signaling hypothesis. Jack Hirshleifer was a leading scholar and original thinker of the 20th century. His scientific contributions have left a Nobel Prize unbestowed.