Copyright Indiana University and UC-Berkeley
Wow, history is made today when the Nobel Prize for Economics for this year was awarded to a woman, the first one in the Prize's 40-year history. Professor Elinor Ostrom, a professor of political science at Indiana University was awarded the prize "for her analysis of economic governance, expecially the commons." She shares the prize with another American economist, Professor Oliver Williamson. Williamson is awarded the prize "for his analysis of economic governance, expecially the boundaries of the firm." And about time too. Williamson is a great influence of mine, particularly on his work on institutional economics. He has contributed much on the economics of transactions cost, and so this prize is well-deserved.
According the Nobel website:
"Elinor Ostrom has demonstrated how common property can be successfully managed by user associations. Oliver Williamson has developed a theory where business firms serve as structures for conflict resolution. Over the last three decades these seminal contributions have advanced economic governance research from the fringe to the forefront of scientific attention."
For more information on their work, check out the Nobel website.
Congratulations, Professor Ostrom and Professor Williamson!
Their Nobel lectures will be held on December 18 at Stockholm University.