The Neumann–Simon Conference at Corvinus University of Budapest is not just an academic event; it is a testament to the predictive power of student insight. For three decades, the Rajk College for Advanced Studies has awarded the John von Neumann and Herbert Simon Awards, recognizing economists and business leaders whose work would later define their fields. This year’s conference brought together alumni and experts to examine how these foundational theories hold up against modern disruptions, from the mechanics of AI to the rewiring of globalization.
A Legacy of Identifying Future Frontiers
What makes the Neumann and Simon Awards unique is their selection process. As Attila Chikán noted in his opening remarks, the awards are strictly democratic and student-driven. The process involves rigorous debate and a college-wide vote. This model has proven remarkably prescient. Among the eleven Neumann laureates who have later won a Nobel Prize, seven were recognized by the Rajk community before receiving the Swedish Academy’s honor. This track record underscores the conference’s value as a forum for identifying the future frontiers of economic thought.
This student-led approach fosters a unique connection between emerging talent and established scholars. The awards are not merely a ceremony; they include shared meals and masterclasses, creating a personal bond that bridges generations of economic thinkers. For students, this is an invaluable opportunity to engage directly with the minds shaping their field.
Decoding the New Global Economy: Beyond Simple Deglobalization
The conference’s opening panel, moderated by Pálma Polyák, tackled the most pressing issue in today’s global economy: the shift away from cost-efficiency as the primary organizing principle. The discussion moved beyond simplistic narratives of deglobalization, proposing more nuanced concepts like geo-fragmentation and slowbalization.
The consensus was that globalization is not simply unraveling but reconfiguring. Shocks like the pandemic, the war in Ukraine, and US-China tensions are compelling nations and firms to build denser networks within politically aligned blocs. However, market forces remain resilient. When old trade routes are severed, capital and energy find new paths. The panel, featuring Andrea Gelei, Csaba Zsótér, and Miklós Koren, explored the practical implications of this new reality.
Strategic Shifts for a Resilient Future
Andrea Gelei highlighted how multinational firms are restructuring supply chains for greater resilience, prioritizing stability over pure cost savings. Csaba Zsótér, drawing on his expertise in the energy sector, illustrated the difficult trade-off between security and efficiency in fuel strategy. Using big data, Miklós Koren traced how economic shocks ripple through complex trade networks.
For a small, open economy like Hungary, these shifts present specific challenges. The panelists concluded that strategies like shortening supply chains and diversifying energy sources may incur higher costs but are essential for managing geopolitical and climate risks. The key for Hungary is to leverage its geographic position and industrial base to maintain deep integration with European and global networks while reducing critical dependencies and moving up the value chain.
Game Theory in Practice: From Poker to Modern Markets
The first Neumann Award lecture, delivered by Péter Eső, provided a masterclass in applying abstract theory to real-world problems. Eső traced the evolution of game theory, starting from von Neumann’s foundational poker model. He demonstrated how frameworks for games of incomplete information can illuminate complex human behaviors like communication, deception, and trust.
The lecture connected the dots from von Neumann’s early work to Harsanyi’s treatment of incomplete information and modern concepts like costly signaling and persuasion. A key takeaway was that more information does not always lead to better outcomes. Selective disclosure can rationally shape beliefs, a concept with profound implications for markets and societies. Eső’s talk suggested that by taking models seriously but not literally, economists can better understand the role of freedom of thought and information in the real world.
The Enduring Relevance of Foundational Theories
The Neumann–Simon Conference served as a powerful retrospective, demonstrating that the foundational theories of past laureates provide vital tools for analyzing contemporary issues. Alumni presented lectures connecting the work of researchers like Joshua Angrist, Susan Athey, and Daron Acemoglu to modern realities, including:
- The mechanics of automation and its impact on labor.
- The role of trust in the implementation of artificial intelligence.
- The effect of political polarization on team dynamics and productivity.
- Data-driven approaches to health policy.
By exploring topics from data-driven health policy to the shifting global economic equilibrium, the event proved that the intellectual legacy of the Neumann and Simon awardees remains critically relevant. The conference was a clear demonstration that student-led foresight can successfully identify and celebrate the theories that best equip us to understand a fragmented and rapidly changing world.
