Economics Nobel prize winners: theories explained

The Nobel prize in Economics this year went to Oliver Hart and Bengt Holmström for their research on contracts and corporations. While their work can be highly technical, one of our textbook authors, Tyler Cowen, explains some of their findings here. Some of their work explains how contracts can be well-designed. Other work by Holmström shows that in other cases, such as medical insurance deductions, “there isn’t a rigorous way to get this trade-off just right.”

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