Oliver Hart and Bengt Holmstrom Win the Nobel Prize in Economics

(STOCKHOLM)—British-born Oliver Hart and Bengt Holmstrom of Finland won the Nobel Memorial Prize in Economic Sciences for their contributions to contract theory, shedding light on how contracts help people deal with conflicting interests.

The Royal Swedish Academy of Sciences said their theories "are valuable to the understanding of real-life contracts and institutions, as well as potential pitfalls in contract design.