Social contract theory is an ancient philosophical idea that states that an individual's ethical and political obligations relate to an agreement he has with every other individual within a society.

Contracts permeate our lives: just think of the contract with your employer or your insurance provider or your bank to get a loan -- even your marriage is a contract. But why are they designed the way ...

Two professors and economists—Oliver Hart and Bengt Holmström—received the Nobel Prize in Economic Sciences Monday for their insights into modern contract theory, specifically how businesses and ...

In modern times, any claims about the world require one thing: evidence. One cannot claim the world is flat without proof, nor can one claim it is round without proof. In that regard, the most common ...

From left, Tomas Sjostrom, member of the Committee for the Prize in Economic Sciences in memory of Alfred Nobel, Goran K. Hansson, Secretary General of the Royal Swedish Academy of Sciences and Per ...

The 2016 Nobel Prize in Economics was awarded Monday to Oliver Hart and Bengt Holmström for their work in contract theory — developing a framework to understand agreements like insurance contracts, ...

An icon in the shape of a lightning bolt. Impact Link Oliver Hart from Harvard and MIT professor Bengt Holmström won this year's Nobel Memorial Prize in Economic Sciences for their study of contracts ...

Harvard University’s Oliver Hart and Bengt Holmström of the Massachusetts Institute of Technology won the 2016 Nobel Prize in Economics for laying the groundwork for contract theory and its role in ...

No legitimate social contract can be devoid of stewardship, responsibility and duty. Recognising this allows us to assess both the historical significance of the democratic revolutionaries of our time ...

British-born Oliver Hart and Bengt Holmstrom of Finland won the Nobel prize in economics for their contributions to contract theory, shedding light on how contracts help people deal with conflicting ...