Most students of economics are familiar with the theory that individuals seek to maximize utility and to use probabilities and expectations when faced with uncertainty. This theory is elegant and powerful. However, it is often not clear what "utility" and "probability" actually mean. The study of these questions has been a lifetime's work for Professor Itzhak Gilboa, the latest addition to HEC's academic community.

From rationality to free will
"Whether we are trying to understand the choices of others or to make the best decision for ourselves, it is far from obvious how the underlying theoretical concepts should be defined," says Professor Gilboa. "Careful analysis of these issues raises classical philosophical questions ranging from the definition of rationality to the meaning of happiness, from induction to free will. Formal analysis and empirical psychological research can enrich us in understanding how these age-old problems affect our everyday decisions."

Having completed a PhD in economics at Tel Aviv University, Professor Gilboa took up a senior position as a professor of decision sciences at the world-renowned JL Kellogg Graduate School of Management before going on to teach at the universities of Boston and Pennsylvania. Since 2001, he has been a fellow at the Cowles Foundation for Research in Economics at Yale, a position he has held concurrently with a professorship at the Eitan Berglas School of Economics in Tel Aviv.

Professor Gilboa is also a prolific writer, publishing more than 70 journal articles and contributing to numerous books throughout his career. Beginning with the study of decision theory, he has extended his research to cover game theory, social decision making and consumer behavior.

Where disciplines meet, new ideas are born
Having spent the last year as a visiting professor at HEC, Professor Gilboa is now joining the department of finance and economics on a permanent basis. "HEC's hosting of GREGHEC (Groupement de Recherche et d'Etudes en Gestion à HEC, a CNRS lab) was an important factor in my decision to come here. GREGHEC brings together experts in decision theory, economics, psychology and other social sciences and promises to be a rich source of ideas and debate. I believe that decision theory is facing exciting challenges and that major progress still lies ahead. GREGHEC features an excellent group of researchers who are likely to make major contributions to the field."