Out 10, 2016

UK-born professor named joint winner of Nobel Prize in Economics

UK-born Oliver Hart and Bengt Holmstrom of Finland have won the Nobel Prize in Economics for their contributions to contract theory, shedding light on how contracts help people deal with conflicting interests.

UK-born Oliver Hart and Bengt Holmstrom of Finland have won the Nobel Prize in Economics for their contributions to contract theory, shedding light on how contracts help people deal with conflicting interests.

Such contractual relationships can deal with anything from CEO bonuses to the deductibles and co-pays for insurance, the Royal Swedish Academy of Sciences said.

"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.

Both laureates are economics professors at universities in Cambridge, Massachusetts, in the US.

BT.COM