Photo taken on Oct. 10, 2016 shows the scene of the press conference held by the Royal Swedish Academy of Sciences to announce the winners of the 2016 Nobel Prize in Economics in Stockholm, Sweden. (Photo: Xinhua/Shi Tiansheng)
Oliver Hart of Harvard University and Bengt Holmstrom of the Massachusetts Institute of Technology have been awarded the Nobel memorial prize in economic sciences.
The announcement was made by Goran Hansson, Secretary-General of the Royal Swedish Academy of Sciences.
"The Royal Swedish Academy of Sciences has decided to award the Sveriges Riksbank Prize in Economic Sciences in memory of Alfred Nobel for 2016 to Oliver Hart and Bengt Holmstrom for their contributions to contract theory."
The Royal Swedish Academy of Sciences said their work shed light on how contracts help people deal with conflicting interests and can deal with anything from CEO bonuses to the deductibles and co-pays for insurance.
