Just shortly before the announcement of this year’s winner of the Sveriges Riksbank Prize in Economic Sciences – commonly known as the Nobel Prize in Economics – the Guardian speculated about the 2016 top contenders. It named Olivier Blanchard, Edward Lazear, Marc Melitz and Paul Romer (Inman, 2016). However, with the announcement of the actual winner by Professor Göran K. Hansson, Secretary General of the Royal Swedish Academy of Sciences, all speculations came to an abrupt halt yesterday. The winners are:
Oliver Hart (Harvard) and Bengt Holmström (MIT)
“for their contributions to contract theory”
Bengt Holmström is “known for his research on the theory of contracting and incentives” (MIT, 2016). The 2016 Nobel prize explicitly honours Holmström’s contributions to principal-agent theory and Holmström’s informativeness principle. Oliver Hart is known for his work on contract theory, the theory of the firm, corporate finance, and law and economics (Harvard, 2016). The 2016 Nobel prize honours Hart’s contributions to contract theory in the case of incomplete contracts (The Royal Swedish Academy of Social Sciences, 2016).
Harvard (2016). Oliver Hart: Andrew E. Furer Professor of Economics. Available at: http://scholar.harvard.edu/hart/home [Accessed 11 October 2016]
Inman, P. (2016). Nobel prize in economics: the top contenders. The Guardian Online. Available at: https://www.theguardian.com/business/2016/oct/07/nobel-prize-in-economics-the-top-contenders [Accessed 11 October 2016]
MIT (2016). Bengt Holmstrom: Short Biography. Available at: http://economics.mit.edu/faculty/bengt/short [Accessed 11 October 2016].
The Royal Swedish Academy of Social Sciences (2016). Press Release: The Prize in Economic Sciences 2016. Available at: https://www.nobelprize.org/nobel_prizes/economic-sciences/laureates/2016/press.html [Accessed 11 October 2016]