• Sweden edition
 
NOBEL PRIZES 2012
US duo awarded Nobel economics prize

US duo awarded Nobel economics prize

Published: 15 Oct 2012 13:05 GMT+02:00
Updated: 15 Oct 2012 13:05 GMT+02:00

The winners were awarded "for the theory of stable allocations and the practice of market design".

“This year's prize is awarded for an outstanding example of economic engineering,” wrote the Nobel Committee in a statement.

According to the Committee, this year's Prize “concerns a central economic problem: how to match different agents as well as possible”.

Shapley made early theoretical inroads into the subject, using game theory to analyze different matching methods in the 1950s and 1960s.

Together with U.S. economist David Gale, he examined “pairwise matching,” by looking at how 10 women and 10 men could be coupled up, while respecting their individual preferences.

The studies were carried out with a focus on “stable matching” – that being the most efficient matching as possible of, for example, students with schools or organ donors with patients.

Roth was later responsible for putting Shapley’s work into practice with research carried out in the 1980s and 1990s.

“Even though these two researchers worked independently of one another, the combination of Shapley's basic theory and Roth's empirical investigations, experiments and practical design has generated a flourishing field of research and improved the performance of many markets,” the committee wrote in a statement.

Staffan Normark, permanent secretary of the Royal Swedish Academy, explained that it was the perfect match of the two economists themselves that led to their work being recognized by the Nobel Committee.

“Lloyd Shapley is a giant in the field of game theory with a huge number of fantastic accomplishments,” he told The Local.

“I think this is a good match to put these two individuals together for this prize with all the theoretical work in the beginning and you have a really practical outcome developed quite recently by Roth with, for example the kidney transplant system in matchmaking.”

“I think it’s a beautiful combination.”

Roth said he was sleeping when he got the call from the prize committee in California, where he is a visiting professor at Stanford University.

“I wasn’t expecting the prize but I was aware it was being awarded today," he said.

"I expected that Lloyd Shapley would win the prize."

In terms about what the prize means, he joked:

“When I go to class this morning, my students will pay more attention now," but added it was "too early" to speculate on how the win might affect the field.

Roth said he intends to travel to Stockholm for the Nobel award ceremony in December. When asked how he would celebrate, he said: “I haven’t made any plans yet; coffee."

Roth, 60, is a professor at Harvard University in Boston. Shapley, 89, is a professor emeritus at University of California Los Angeles.

The Nobel Memorial Prize in Economic Sciences was the last of the 2012 Nobel awards to be announced.

It’s not technically a Nobel Prize, because unlike the five other awards it wasn’t established in the will of Alfred Nobel, a Swedish industrialist also known for inventing dynamite.

The economics prize was created by the Swedish central bank in Nobel’s memory in 1968, and has been handed out with the other prizes ever since. Each award is worth 8 million kronor ($1.2 million).

Last year’s economics prize went to U.S. economists Thomas Sargent and Christopher Sims for describing the cause-and-effect relationship between the economy and government policy.

The 2012 Nobel Prizes in medicine, physics, chemistry and literature and the Nobel Peace Prize were announced last week. All awards will be handed out on December 10th, the anniversary of Nobel’s death in 1896.

Oliver Gee/AFP

Follow Oliver on Twitter here

The Local (news@thelocal.se)

Don't miss...X
Left Right

Your comments about this article

15:00 October 15, 2012 by Hamsterdam
Just more fawning over US economics as the model Sweden most admires.

The Nobel's are nothing more than a pompous embarrassment that culminate in an evening that focusses on the dresses worn by the women. How grand.
23:11 October 15, 2012 by acidcritic
I propouse a world concourse for a duty free travel to Stockholm. Answer to the following question;: "What is worse the Peace Nobel Prize or the Nobel Prize in Economics?
Today's headlines
Property of the Week
In Pictures: The Local's Property of the Week
Photo: Fastighetsbyrån

In Pictures: The Local's Property of the Week

Why settle for owning a house when you can own part of the island it is located on? This week's property allows you to get your money's worth of solitude while spending some time with your closest neighbour - the sea. READ  

Saab buys Swedish submarine shipyard
File photo: TT

Saab buys Swedish submarine shipyard

Swedish defence and aeronautics group Saab said Tuesday it had completed the acquisition of German heavy industry giant ThyssenKrupp's submarine shipyard in southern Sweden. READ  

My Swedish Career
American aims to beat cancer with invention
Matthew Volsky holding the Gynocoular colposcope which is used for screening cervical cancer. Photo: Gynocoular

American aims to beat cancer with invention

When Matthew Volsky first came to Sweden he didn't think he would stick around. Six years and a pioneering invention later he tells The Local about the medical device which is helping save lives around the world. READ  

Opinion
'The Danish narrative on Sweden is based on a lie'
File photo: Shutterstock

'The Danish narrative on Sweden is based on a lie'

There is a popular narrative that in Sweden people bite their tongues while in Denmark they speak their minds; political commentator Brian Esbensen debunks this, arguing that Danes simply find it easier to criticize others. READ  

Swedish cops elect not to shoot 'angry elks'

Swedish cops elect not to shoot 'angry elks'

After reports that wandering elks were scaring the public, police on the island of Frösön have decided not to open fire on the animals, but have urged locals to exercise caution instead. READ  

Swedish funds to tackle female genital mutilation
Sweden's Minister of International Development Cooperation Hillevi Engström with Foreign Minister Carl Bildt. File photo: TT

Swedish funds to tackle female genital mutilation

Sweden has earmarked 48 million kronor ($7 million) of its development aid budget to a United Nations programme to tackle female genital mutilation. READ  

Swedish leaders speak out on Gaza crisis
Photo: TT

Swedish leaders speak out on Gaza crisis

Swedish foreign minister Carl Bildt believes Israel is interested in negotiating a ceasefire with Hamas while Social Democrat leader Stefan Löfven has stood by his comment about the Israelis having a right to defend itself. READ  

New rules threaten micro-breweries
File photo: Systembolaget

New rules threaten micro-breweries

Swedish micro-breweries have reacted with concern to new distribution regulations being imposed by the state controlled alcohol monopoly Systembolaget, which they fear may put them out of business. READ  

ABB and Volvo in electric buses tie-up
Volvo hybrid bus. Photo: Volvo Buses

ABB and Volvo in electric buses tie-up

Swiss-Swedish engineering group ABB and Volvo Buses of Sweden have announced a joint project to develop a system for electric buses to recharge their batteries fast when at bus stops. READ  

'First ever' heat warning issued for Sweden
Photo: TT

'First ever' heat warning issued for Sweden

Swedish weather agency SMHI has issued its first ever warning for high temperatures with the many areas set to bask in plus 30C heat. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Gallery
People-watching Båstad
Business & Money
Sweden falls to third in global innovation index
Society
Swedish ornithologists keep webcam watch
Photo: Andreas Nordström/Image Bank Sweden
Gallery
Top ten Swedish beach hot spots
Tech
Swedish Wiki vet sets new content record
Blog updates

22 July

PROTECTING GIRLS FROM ABUSE OF THEIR RIGHTS (The Diplomatic Dispatch) »

"Today (22 July) my Prime Minister, David Cameron, and UNICEF, are hosting the world’s first #GirlSummit in London. The Summit’s aim is to mobilise domestic and international efforts to end the appalling practices of Female Genital Mutilation (FGM) and Child Early Forced Marriage (CEFM). This is a high priority for the UK government and the Prime..." READ »

 

18 July

Starting over (Around Sweden in a kayak) »

" I’ve now been off the water for almost 14 days. At first I was totally gutted being forced into a rest period, I had Stockholm in my sights and apart from the pain and discomfort in my shoulder, spirits were high and I was starting to gain some momentum. The news hit me fairly hard and..." READ »

 
 
 
Photo: Fastighetsbyrån
Lifestyle
In Pictures: The Local's Property of the Week
Photo: Finest.se
Gallery
People-watching July 15-16
Photo: Ola Ericson/Image Bank Sweden
Society
What's On in Sweden
Photo: Lisa Mikulski
National
Hope springs eternal for expat pet shop owner
Gallery
Princess Estelle steals limelight at mum's birthday
National
Swedes risk infants' lives by covering up prams
National
Swede runs for office just using Bitcoin funds
Gallery
People-watching July 11-13
National
Malmö mayor slams Danish beggar ban
National
Swedish anti-abortion midwife sues county
National
Swede's salary chopped for Facebook use
National
Northern Sweden warmest in 90 years
Gallery
'Victoria Day': Crown Princess Victoria turns 37
Politics
Mona Sahlin to fight extremism in Sweden
National
EU tells Sweden to cover up snus flavours
Society
Swede snags assassin role in Tom Cruise film
Lifestyle
Top ten ways to spend a few days in Malmö
Gallery
Swedish summer tourism highlights
Sponsored Article
Introducing... Your finances in Stockholm
Sponsored Article
Introducing... Housing in Stockholm
Latest news from The Local in Austria

More news from Austria at thelocal.at

Latest news from The Local in Switzerland

More news from Switzerland at thelocal.ch

Latest news from The Local in Germany

More news from Germany at thelocal.de

Latest news from The Local in Denmark

More news from Denmark at thelocal.dk

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

699
jobs available
Swedish Down Town Consulting & Productions
Swedish Down Town Consulting & Productions is an innovative business company which provides valuable assistance with the Swedish Authorities, Swedish language practice and general communications. Call 073-100 47 81 or visit:
www.swedishdowntown.com
If you want to drink, that’s your business.
If you want to stop, we can help.

Learn more about English-language Alcoholics Anonymous in Sweden. No dues. No fees. Confidentiality assured.
AA-EUROPE.ORG/SWEDEN
PSD Media
PSD Media is marketing company that offers innovative solutions for online retailers. We provide modern solutions that help increase traffic and raise conversion. Visit our site at:
http://psdmedia.se