Europe

Oliver Hart, Bengt Holmstrom win Nobel prize in economics

  • FILE - In this Nov. 2, 2015 file photo, Finnish Professor Bengt Holmstrom of Massachusetts Institute of Technology attends a business seminar in Helsinki, Finland. Bengt Holmstrom and Oliver Hart on Monday Oct. 10, 2016, win the Nobel Memorial Prize in economic sciences. (Jussi Nukari/Lehtikuva via AP, File) FINLAND OUT

    FILE - In this Nov. 2, 2015 file photo, Finnish Professor Bengt Holmstrom of Massachusetts Institute of Technology attends a business seminar in Helsinki, Finland. Bengt Holmstrom and Oliver Hart on Monday Oct. 10, 2016, win the Nobel Memorial Prize in economic sciences. (Jussi Nukari/Lehtikuva via AP, File) FINLAND OUT  (The Associated Press)

  • From left, Tomas Sjostrom, member of the Committee for the Prize in Economic Sciences in memory of Alfred Nobel, Goran K. Hansson, Secretary General of the Royal Swedish Academy of Sciences and Per Stromberg, Chairman of the Committee for the Prize in Economic Sciences in memory of Alfred Nobel, attend a press conference to announce Oliver Hart and Bengt Holmstrom as the winners of the Nobel Memorial Prize in economic sciences. (Stina Stjernkvist/TT via AP)

    From left, Tomas Sjostrom, member of the Committee for the Prize in Economic Sciences in memory of Alfred Nobel, Goran K. Hansson, Secretary General of the Royal Swedish Academy of Sciences and Per Stromberg, Chairman of the Committee for the Prize in Economic Sciences in memory of Alfred Nobel, attend a press conference to announce Oliver Hart and Bengt Holmstrom as the winners of the Nobel Memorial Prize in economic sciences. (Stina Stjernkvist/TT via AP)  (The Associated Press)

  • FILE - In this Nov. 2, 2015 file photo, Finnish Professor Bengt Holmstrom of Massachusetts Institute of Technology attends a business seminar in Helsinki, Finland. The Nobel Memorial Prize in economic sciences has been awarded to Oliver  Hart and Bengt Holmstrom on Monday Oct. 10, 2016. The Nobel jury praises the winners "for their contributions to contract theory." (Jussi Nukari/Lehtikuva via AP, File) FINLAND OUT

    FILE - In this Nov. 2, 2015 file photo, Finnish Professor Bengt Holmstrom of Massachusetts Institute of Technology attends a business seminar in Helsinki, Finland. The Nobel Memorial Prize in economic sciences has been awarded to Oliver Hart and Bengt Holmstrom on Monday Oct. 10, 2016. The Nobel jury praises the winners "for their contributions to contract theory." (Jussi Nukari/Lehtikuva via AP, File) FINLAND OUT  (The Associated Press)

Oliver Hart and Bengt Holmstrom have won the Nobel Memorial Prize in Economic Sciences for their contributions to contract theory.

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.