MOSCOW/STOCKHOLM (Sputnik) – The Royal Swedish Academy of Sciences have awarded the Nobel Prize in Economics Sciences to Oliver Hart and Bengt Holmstrom on Monday for their contributions to contract theory.
"The new theoretical tools created by Hart and Holmstrom are valuable to the understanding of real-life contracts and institutions, as well as potential pitfalls in contract design," the academy said in its announcement.
It lauded the laureates for developing a "comprehensive framework for analyzing many diverse issues in contractual design," including performance-based payments and the privatization of public-sector activities.
Hart, a British national, is a Professor of Economics at Harvard University. Holmstrom, a Finnish national, is a Professor of Economics and Professor of Economics and Management at Massachusetts Institute of Technology.
