Contract theory earns Nobel prize for two economists – the Journal News

The Nobel prize in Economics was this Monday awarded to the economists Oliver Hart and Bengt Holmström for his contribution to the theory of contracts.

The Royal Swedish Academy of Sciences distinguished, thus, the british economist, Oliver Hart, and the economist, Finnish, Bengt Holmström, both professors in north american universities, for “his contributions to the Theory of Contracts”, that they consider “valuable” to realize the same in real life, as well as potential pitfalls in their design.

“Through their contributions, Hart and Holmström, developed the Theory of Contracts as a fertile field for research. In recent decades, explored also many of its applications. Your analysis about the improvement of the conditions of contract sets out the basis for the definition of policies and institutions in multiple areas of bankruptcy legislation the constitution”, underlines the organization said in a statement.

Oliver Hart was born in 1958 in London and is a lecturer at the University of Harvard (Massachusstes, United States), while the Finnish Bengt Halmström, born in 1949 in Helsinki gives lessons of economics and management at the Massachusetts Institute of Technology (MIT), also in the United States.

scholars will share a prize of eight million crowns, the equivalent of 826 thousand euros.

The Nobel prize in Economics is the only one that was created by the Swedish central bank in 1968. The others were established in 1895 by inventor and philanthropist the Swedish Alfred Nobel.

This was the fifth of the six Nobel prizes which will be awarded this year.

last week, it was announced the awards for Medicine, Physics, and Chemistry, as well as the Peace, which distinguished the efforts of colombian president Juan Manuel Santos to end a conflict of more than half a century with the Revolutionary Armed Forces of Colombia (FARC).

The last prize, the Literature, will be announced on Thursday.

The Swedish Academy can choose to novelists ‘superstar’ as the american Philip Roth or the japanese Haruki Murakami or by writers less well-known as the Norwegian playwright, Jon Fosse, or the poet and the syrian Adonis.

The Nobel prize consists of a diploma, a gold medal and a check in the amount of eight million crowns, which the laureates will receive at a ceremony in Stockholm on December 10.