The 2016 Nobel Prize in Economics has been awarded to two professors from Harvard and MIT for their contributions to contract theory. According to Per Strömberg, this theory is super useful for example to avoid bonuses leading to wrong decisions in companies.
British economist Oliver Hart, 68, teaching at Harvard, and Bengt Holmström, 67, a Finnish economist teaching at MIT, were announced as winners of the prestigious prize on Monday by the Royal Academy of Sciences in Stockholm, Sweden.
Hart and Holmstrom so obviously deserving that my first thought was "didn't they have it already?" https://t.co/tdr52WYU3y— Paul Krugman (@paulkrugman) October 10, 2016