2016 Nobel Prize in Economic Sciences awarded to Oliver Hart (Harvard) and Bengt Holmström (MIT)

The 2016 Nobel Prize in Economics (Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel) has been awarded to Profs. Oliver Hart and Bengt Holmström. The announcement by the Royal Swedish Academy of Sciences, on 10 October reads: “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.” The Prize will be presented in December.