Professor of Economics
Ph.D. 1977 (economics), Cambridge; M.A. 1972 (economics), Carleton; B.Sc. 1970 (economics and mathematics), Trent.
Department of Economics
New York University
19 W. 4th Street, 6FL
New York, NY 10012
Areas of Research/Interest:
Economics of finance, money and banking; general equilibrium theory; bounded rationality.
Douglas Gale has been a Professor in the Department of Economics since 1996. Among his research and teaching interests are the economics of finance, money and banking, general equilibrium theory and bounded rationality. He earned his B.Sc. in Economics and Mathematics from Trent University (1970); his M.A. in Economics from Carleton University (1972) and his Ph.D. in Economics from Cambridge University (1977). Dr. Gale is the author of numerous works including: Strategic Foundations of General Equilibrium: Dynamic Matching and Bargaining Games; Money in Disequilibrium; and Money in Equilibrium (Cambridge University Press, 2000, 1983, 1982). He also co-authored Comparing Financial Systems and Financial Innovation and Risk Sharing, both with Franklin Allen (MIT Press 1999, 1994), and he co-edited Economic Analysis of Markets and Games: Essays in Honor of Frank Hahn (MIT Press 1992). Dr. Gale is a Fellow of the Econometric Society, a Senior Fellow at the Financial Institutions Center at the Wharton School of the University of Pennsylvania and an Extraordinary (Title E) Fellow of Churchill College in the University of Cambridge.
Fellow, Econometric Society; Senior Fellow, Financial Institutions Center, Wharton School, University of Pennsylvania; Extraordinary Fellow, Churchill College, Cambridge.
Silver Dialogues Essay
For most of my career, being an economic theorist has involved building models of economic phenonomena using two fundamental ideas, rational choice and equilibrium, as building blocks.
The assumption of rational choice in a model of human behavior is not as restrictive as it sounds. It simply requires that each decision maker have consistent preferences over all possible alternatives and that he choose the most preferred alternative from the feasible set. Consistency does not rule out preference for status or power; nor does it rule out feelings of envy and altruism. Consistency is an empty box and we can fill it as we wish. Equilibrium, by contrast, is a more restrictive concept. One definition of equilibrium, due to Nash, plays a central role in the theory of games. It assumes that each player chooses a strategy that maximizes his payoff taking as given the strategies of his opponents. In other words, each player chooses a best response to the strategies of the other players. Read More...