Nobal prize in Economic Sciences- The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2009

The Sveriges

Riksbank Prize in

Economic

Sciences in

Memory of Alfred

Nobel 2009

Elinor Ostrom

Elinor Ostrom

Prize share: 1/2

Oliver E. Williamson

Oliver E. Williamson

Prize share: 1/2

The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2009 was divided equally between Elinor Ostrom “for her analysis of economic governance, especially the commons” and Oliver E. Williamson “for his analysis of economic governance, especially the boundaries of the firm”.

 

Elinor Ostrom – Facts

Elinor Ostrom

Elinor Ostrom

Born: 7 August 1933, Los Angeles, CA, USA

Died: 12 June 2012, Bloomington, IN, USA

Affiliation at the time of the award: Indiana University, Bloomington, IN, USA, Arizona State University, Tempe, AZ, USA

Prize motivation: “for her analysis of economic governance, especially the commons”

Field: economic governance

Contribution: Challenged the conventional wisdom by demonstrating how local property can be successfully managed by local commons without any regulation by central authorities or privatization.

Prize share: 1/2

Life

Elinor Clair Awan was born in Los Angeles, California in the United States, and grew up in a family of simple means. She studied political science at the University of California Los Angeles, where she also received her PhD in 1965. She later went on to work at Indiana University in Bloomington. Elinor Ostrom has also been affiliated with Arizona State University in Tempe and Virginia Tech. She married fellow political scientist Vincent Ostrom in 1963.

Work

It was long unanimously held among economists that natural resources that were collectively used by their users would be over-exploited and destroyed in the long-term. Elinor Ostrom disproved this idea by conducting field studies on how people in small, local communities manage shared natural resources, such as pastures, fishing waters, and forests. She showed that when natural resources are jointly used by their users, in time, rules are established for how these are to be cared for and used in a way that is both economically and ecologically sustainable.

Oliver E. Williamson – Facts

Oliver E. Williamson

Oliver E. Williamson

Born: 27 September 1932, Superior, WI, USA

Affiliation at the time of the award:University of California, Berkeley, CA, USA

Prize motivation: “for his analysis of economic governance, especially the boundaries of the firm”

Field: economic governance

Contribution: Provided a theory of why some economic transactions take place within firms and other similar transactions take place between firms, that is, in the marketplace. The theory informs us about how to handle one of the most basic choices in human organization. When should decision power be controlled inside an organization, and when should decisions be left to the market.

Prize share: 1/2

Life

Oliver Williamson was born in Superior, Wisconsin, in the United States. Although his parents were originally teachers, his father later started his own real estate company. After first studying at MIT and Stanford University, he earned his PhD from Carnegie Mellon University in Pittsburgh. He has held professorships at the University of Pennsylvania in Philadelphia, at Yale University, and at the University of California, Berkeley, among others. Oliver Williamson is married with five children.

Work

Financial transactions do not only occur on financial markets, but also within organizations – companies, associations, households, and public authorities. Financial analysis has most often focused on markets, whereas Oliver Williamson’s research concentrates more on organizations. According to Oliver Williamson, markets and companies used different conflict resolution methods. In the early 1970s, he proposed the theory that organizations are sometimes more efficient than markets because their conflicts are simple and cheaper to solve.

Leave a Reply

Your email address will not be published. Required fields are marked *