The award of memory of Alfred Nobel was given for the development of the theory of contracts

STOCKHOLM, 10 Oct – RIA Novosti, Lyudmila Bozhko. Prize in Economics for the year 2016, established 48 years ago in memory of Alfred Nobel by the Swedish state Bank, was awarded “for contribution to the development of the theory of contracts,” working in the United States Oliver HART and Bengt Holmstrom. This was announced by the Royal Swedish Academy of Sciences, which is responsible for the award.

“The modern economy rests on numerous contracts. Developed by HART and Holmstrom new theoretical tools help us to understand the real nature of contracts and institutions and to avoid mistakes when it comes to contracts,” — said in a press release.

In the US 68-year-old native of Britain HART works at Harvard University, a 67-year-old Khol’mstrem born in Finland, is at the Massachusetts Institute of technology. Khol’mstrem himself admitted to reporters that he was very surprised and happy when I found out about the award.

The amount of the prize in Economics this year is 8 million Swedish kronor (932 thousands of U.S. dollars). The award ceremony will be held traditionally in Stockholm on December 10-the day of death of the founder of the Nobel prize – Swedish entrepreneur and inventor Alfred Nobel (1833-1896).

On the same day in the capital of Sweden will award bequeathed the prize for medicine, physics, chemistry and literature, and the ceremony of peace is traditionally held in Oslo.