Assignment #1 Example | Topics and Well Written Essays - 500 words

#1 - Assignment Example His work can be used by the central banks to curb inflationary expectations appropriately. 2005: Robert J. Aumann and Thomas C. Schelling: They received the award for their research of conflict and cooperation through game-theory analysis. Schelling applied the concepts of game-theory to international relations. Prof. Aumann’s work focused on the issue of effect of continued repetition of games on co-operation. 2004: Finn E. Kydland and Edward C. Prescott: They received the Noble prize for their research on effects of business cycles on international trade. They examined the driving forces behind business cycles, and analyzed the temporal consistency of economic policy 1998: Amartya Sen: Prof. Amartya Sen received the Noble prize for his work on welfare economics in case of famine, and suggestions to prevent it. His work focused on the human development theory, the underlying mechanism of poverty, and political liberalism. The Oxford English dictionary defines theory as â€Å"an idea or set of ideas that is intended to explain something† (â€Å"Theory†). Formulation of a theory is a step-by-step scientific process, starting from an opinion to stating the final theory. The starting point of a theory is an observation of a particular process. The interest created by this observation then leads to the formulation of an opinion regarding the process. This opinion is based on the available information regarding the same process, and the researcher’s beliefs. These opinions are also a reflection of the researcher’s expectations regarding the outcome of the enquiry. These opinion and observation then lead to the formulation of hypotheses. Hypothesis is a possible theoretical explanation of the observation made by a researcher to fill the gaps in the research previously done on the subject matter. This is followed by collection and classification of the data. Data collection is followed by the formulation of invariance