Sweden : The Royal Swedish Academy of Sciences has awarded the Sveriges Riksbank Prize in Economic Sciences in memory of Alfred Nobel to Oliver Hart of Harvard and Bengt Holmström of Massachusetts Institute of Technology (MIT) for their contributions to contract theory.
Through their initial contributions, Hart and Holmstrom launched contract theory as a fertile field of basic research.
Over last few decades, they have also explored many of its applications. Their analysis of optimal contractual arrangements lays an intellectual foundation for designing policies and institutions in many areas, from bankruptcy legislation to political constitutions. Hart was born in London but he spent his academic career in the US and is currently the Andrew E. Furer Professor of Economics at Harvard University.
Holmström was born in Helsinki and is a Professor of Economics and Management at MIT, Cambridge, the US. The winners will split an 8 million Swedish kronor ($924,000) award funded by the Swedish central bank. — ANI
