Contracts: Oliver Hart and Bengt Holmström

Monday, 10 October, 2016

The 2016 Nobel Prize in Economic Sciences has been awarded to Oliver Hart and Bengt Holmström. It was “their contributions to contract theory” that convinced the Royal Swedish Academy of Sciences:

“Modern economies are held together by innumerable contracts. The new theoretical tools created by Hart and Holmström are valuable to the understanding of real-life contracts and institutions, as well as potential pitfalls in contract design.”

Next year, the economics of productivity or the environment might get the gong. And William Baumol will be 95, we hope.

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