Two Americans were awarded the Nobel Memorial Prize in Economic Science.
Alvin E. Roth and Lloyd Shapley work on market design and matching theory, studying how people and companies find and select each other.
Their work primarily relates to markets that do not have prices, or at least have strict constraints on prices. In classical economics, prices are the main mechanism through which resources are allocated. The laureates’ breakthroughs involve figuring out how to properly assign people and things to stable matches when prices are not available to help buyers and sellers pair up.
The Nobel in economic science is not one of the original prizes created by Alfred Nobel. It has been awarded each year since 1969 by the Royal Swedish Academy of Sciences. In addition to a medal and a diploma, the laureates collectively win a cash prize worth about $1.2 million.
Read more at The New York Times.