British-born Oliver Hart and Finland's Bengt Holmstrom win the 2016 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. Mana Rabiee reports.
The 2016 Nobel prize in economics goes to UK-born Oliver Hart and Finland's Bengt Holmstrom. Both men now work in the U.S. They're being acknowledged for their contributions to what's called "contract theory" -- helping understand real-life issues in economics like performance-based pay for top executives or bankruptcy legislation. The announcement was made Monday in Stockholm, Sweden. (SOUNDBITE) (English) SECRETARY GENERAL OF THE ROYAL SWEDISH ACADEMY OF SCIENCES, GORAN K. HANSSON, SAYING: "... for 2016 to Oliver Hart and Bengt Holmstrom for their contributions to contract theory." Hart teaches economics at Harvard University while Holmstrom teaches economics and management at the Massachusetts Institute of Technology. They'll be sharing the roughly $928,000 prize.