Research on the contract led to the prize in economic sciences – Swedish newspaper svenska Dagbladet

Foto: Magnus Hjalmarson Neideman

It’s all about motivation and incentives. Professor Per Strömberg asked to explain this year’s prize, so that a child understands and provides the following example.

– Should a child only get their allowance if it paves the way to the bed, and brushing your teeth, or even if the bed is unmade and the teeth are dirty? It is not good to only reward their children for specific tasks but not to reward them regardless. This theory is all about balance and finding the balance, ” says Per Strömberg.

Now, therefore, the finn, Bengt Holmström, worked at MIT, and britten Oliver Hart, a lecturer at Harvard, share the Sveriges Riksbank prize in economic sciences in memory of Alfred Nobel.

My research shows that it is not just money that motivates, but people’s ambitions.

child-rearing is just an example. It may be how the bonus program should be designed for bolagschefer, deductibles for policyholders and the privatisation of public activities. Contract theory may seem simple on the surface but is, of course, extremely complex. There may be conflicts of interest, lack of information, and incomplete contracts.

” the Contract is extremely fundamental in society. This year’s winner helps us not only to understand reality but also to be able to avoid the pitfalls of misaligned incentives at the bad bonus to the ceos, ” says Per Strömberg.

On the telephone during the press conference, ” says Holmström himself that he does not take a position to levels of bonuses, but that his personal opinion is that the structures are too complex today.

When the price is published, it has only been nine hours since the last clash between Hillary Clinton and Donald Trump in the united states. Another part of the Bengt holmström’s research concerns the karriärhänsyn, and that also includes the relationship between politicians and voters.

” My research shows that it is not just money that motivates, but people’s aspirations. There does visibility play a large role as to being on tv. But the big televised debates, gives the complex incentives that lead to both good and bad behaviors, ” says Holmström.

It is confidential how prisarbetet go to, there you can read about in the next 50 years.

the Choice of Holmström and Hart is estimated by economists that The … have spoken with. Both were on professor Hubert Fromlets list of possible names.

– It is important that the contracts provide an incentive, a carrot, to make something better. It need not be any financial gain but it can just as easily be about writing a contract that is good for the environment, said Hubert Fromlet.

Hubert Fromlet have met with Bengt Holmström, on several occasion, and describes him as a very nice person.

– in Addition it is extra fun to the mission goes to a Swedish-speaking finn. He has also worked a lot with contracts in the business world and have a wide network of contacts in the corporate world.

Professor Lars Jonung says that the price goes to two recognised and very established scientists.

” this is also an area which attracts many young scientists, it is far from färdigforskat. The challenge now is to integrate it with the general economic theory, ” says Lars Jonung.

Bengt Holmström is thus born in Finland and have been) always had one foot in the business world. Previously, he was with the Finnish Nokia’s board of directors. Oliver Hart was born in the Uk. Now the two work, which most of the economics laureates, at the american prestigeuniversitet. Per Strömberg tells us that it was very happy and touched laureates who answered the phone.

” It was only quiet for a few seconds. Both also said it was fun to win the prize, together with the other, they were happy that it was the combination.

Many believed american professor Paul Romer, who researches on growth, would get the prize. But Roma has recently been appointed chief economist at the world Bank and many discussed if it could be him in the keg.

– It is confidential how prisarbetet go to, there you can read about in the next 50 years. But an important principle is that scientific work should be rewarded. What people do at the side of the is not of huge importance.