American Thomas Schelling Israeli-American Robert Aumann have won this year's Nobel Prize in Economics for their work on people's decisions in business and society.

The Royal Swedish Academy of Sciences announced the one-point-three million dollar prize Monday in Stockholm.

Mr. Schelling and Mr. Aumann were honored for their separate work on "game theory."

The theory attempts to explain how people make strategic and mathematically-based decisions on matters ranging from trade disputes, crime, and wars to such mundane choices as theater seats.

The Nobel committee says their research goes far beyond economics to global security and arms control.

The final 2005 Nobel Prize to be awarded is in literature. The date for the prize has yet to be announced.

Some information for this report provided by AP, AFP and Reuters.