Contract Theory in the Spotlight: Oliver Hart and Bengt Holmström, 2016 Nobel Prize Winners

Pierre Fleckinger () and David Martimort

Post-Print from HAL

Abstract: Oliver Hart and Bengt Holmström were awarded the 2016 Swedish National Bank's Prize in Economic Sciences in Memory of Alfred Nobel for their contributions to the Theory of Contracts. Their works build a theory of firms and organizations that is based on two pillars: (1) Parties exert efforts or incur investments that increase the value of their relationships, but these actions are sometimes hidden, not directly observed, and thus cannot be contractually enforced by courts, and (2) contracts and ownership structures are (imperfect) responses to such informational frictions. Together, the contributions of these authors have paved the way for a complete renewal of the Theory of the Firm and Organizations Theory.

Keywords: Contract theory; Incentives; Moral hazard; Incomplete contracts (search for similar items in EconPapers)
Date: 2018
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Published in Revue d'économie politique, 2018, 128 (4), pp.493-533. ⟨10.3917/redp.284.0493⟩

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: Contract Theory in the Spotlight: Oliver Hart and Bengt Holmström, 2016 Nobel Prize Winners (2018)
Working Paper: Contract Theory in the Spotlight: Oliver Hart and Bengt Holmström, 2016 Nobel Prize Winners (2018)
Working Paper: Contract Theory in the Spotlight: Oliver Hart and Bengt Holmström, 2016 Nobel Prize Winners (2018)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-01952988

DOI: 10.3917/redp.284.0493

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().