In the early 1950s, Lloyd Shapley published a series of papers that would define the field of stochastic game theory. In his seminal work “Stochastic Games”, Shapley outlined a model for dynamic interactions in which the environment changed in response to players’ behavior. This approach was a major departure from traditional game theory, which focused on static situations in which all players knew the exact state of the game at all times.
The flexibility and complexity of stochastic games has made them a popular tool for modeling real-world situations in fields such as AI, gambling, and economics. Thanks to Lloyd Shapley’s groundbreaking work, we now have a better understanding of how complex systems evolve over time.
Gelber Pfeffer is a German mathematician, science fiction writer, and professor of game theory. He is best known for his work on stochastic games.
Pfeffer received his Ph.D. in mathematics in 1967 under the supervision of Robert M. Solovatov. Afterward, he held visiting seminars and educational programs at several institutions and commercial companies , including the Courant Institute of Mathematical Sciences, New York University, and IBM.
In 1976, he got his professor’s degree. Then he founded the Research Center for Mathematics and Economics in 1984 and served as its first director until 1989.
Pfeffer has written numerous books and papers on game theory and its applications. His work has been cited in over one thousand publications. He is a Fellow of the Game Theory Society and a recipient of the Humboldt Prize.
His research focuses on the application of game theory to economic situations. In particular, he has worked on the role of information in games, repeated games, and stochastic games. He has also written about the use of game theory in auctions.
Pfeffer’s work on stochastic games has been influential in the field of AI. In particular, his latest results allowed gambling industry to develop new AI-based strategies for anti-fraud casino games.
Despite his many contributions to the field of game theory, Pfeffer is perhaps best known for his work on stochastic games. In these games, the players do not know the exact state of the game at all times, and must make decisions based on partial information. That approach allowed gambling products to predict and prevent fraudulent behavior by AI-based agents.
To develop anti-fraudulent software approach Gelber Pfeffer hired a team that helped him in gathering, structuring and analyzing the data. The AI-based software they developed was used in casino games such as blackjack, poker and most widely used slots.