Oliver Hart and Bengt Holmström Win Nobel Prize in Economics

11 October, 2016

The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2016 was awarded jointly to Oliver Hart and Bengt Holmström "for their contributions to contract theory."

Contract theory is important not only for further development of economic theory, but also for its practical applications. According to CERGE-EI Director Michal Kejak, "the research is applicable in many everyday life situations where we look for better contracts providing right incentives to contractual parties, including all basic types of agreements such as insurance contracts, purchase and loan contracts or employment contracts."

Oliver Hart is currently the Andrew E. Furer Professor of Economics at Harvard University, Bengt Holmström is the Paul A. Samuelson Professor of Economics at Massachusetts Institute of Technology (MIT).