US duo win Nobel economics prize

Written By Unknown on Senin, 15 Oktober 2012 | 19.19

US scholars Alvin Roth and Lloyd Shapley have won the Nobel economics prize for research on how to match different agents as well as possible, the Nobel jury says.

The two were honoured for "the theory of stable allocations and the practice of market design," it said.

The theory of stable allocations helps explain the market processes at work when doctors are assigned to hospitals, students to schools and human organs for transplant to recipients.

The pair worked independently of each other but "the success of their research is due to the combination of Shapley's theoretical results with Roth's insights into their practical value," the committee said.

Roth, 60, is a professor at Harvard Business School in Boston, Massachusetts, while Shapley, 89, is a professor emeritus at the University of California.

The two laureates will receive the prize, consisting of a Nobel diploma, a gold medal and 8.0 million Swedish kronor ($A1.17 million), at a ceremony in Stockholm on December 10, the anniversary of Swedish industrialist and prize creator Alfred Nobel's death.

Last year, the prize went to US researchers Thomas Sargent and Christopher Sims for research on the causal relationship between economic policy and different macroeconomic variables, such as GDP, inflation, employment and investments.

Monday's economics prize wraps up the 2012 Nobel season.


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