STOCKHOLM — Oliver Hart and Bengt Holmstrom have won the Nobel Memorial Prize in Economic Sciences for their contributions to contract theory.
Hart and Holmstrom are professors at Harvard and MIT.
The Royal Swedish Academy of Sciences says their theories "are valuable to the understanding of real-life contracts and institutions, as well as potential pitfalls in contract design."
The award is worth 8 million kronor, or about $930,000.