Finland's Bengt Holmstrom is 'very gratified' after winning joint Nobel Economics Prize with British-born Oliver Hart (Rough Cut only - no reporter narration)
Finland's Bengt Holmstrom and British-born Oliver Hart have won the Nobel Economics Prize for work that addresses a host of questions from how best to reward executives to whether schools and prisons should be privately owned. (SOUNDBITE) (English) JOINT NOBEL ECONOMICS PRIZE WINNER BENGT HOLMSTROM SAYING: "I hope It's not too much. So you know, it's of course very gratifying to get this prize but at the same time one understands that there are a lot of deserving people and it's always an element of luck to be chosen. So I hope it doesn't get to one's head too much." "This is about, initially about financial incentives and you know the trajectory of the research has gone towards realizing that incentives are not just about money and paying executives or whatever but you know incentives is a whole system and includes job designs and organizational designs and culture and other dimensions like that so that, there has been kind of the broader, broader context and understanding how difficult it is to design incentives and how important it is to get the various pieces to, to fit each other." "Once you say that, incentives have always come with some negative sides also. So financial incentives is basically things that you have to be very careful about because they may drive good things of course but they also come with side effects." "Oliver Hart he is a long time friend and I couldn't be happier to share this prize with him. I've known him for 30 or maybe 40 years soon and he's here in Cambridge and he's my closest intellectual friend here and personal friend also."