By Karl Ritter, The Associated Press, October 10, 2016
STOCKHOLM – British-born Oliver Hart and Bengt Holmstrom of Finland won the Nobel prize in economics for shedding light on how contracts help people deal with conflicting interests, from CEO pay packages to whether to privatize a public service.
In announcing the award Monday, the Royal Swedish Academy of Sciences said that “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.”
