ContractsProf Blog

Editor: D. A. Jeremy Telman
Valparaiso Univ. Law School

A Member of the Law Professor Blogs Network

Wednesday, October 14, 2009

Nobel Prize in Economics goes to Academics Who Pay Attention to “What Happens in the Real World” and Contracts

Elinor Ostrom and Oliver Williamson were awarded the Nobel Prize in economics earlier this week.  The WSJ describes both of their work has “highlight[ing] areas where standard approaches of economics are inadequate at explaining what actually occurs.”  Further, the WSJ explains (subscription required):
Mr. Williamson's work is driven by two key ideas. The first is that a contractual agreement can never be complete; there are always contingencies that haven't been accounted for. The other is that people act opportunistically within the gray area of contracts to make sure they benefit the most, and that can lead to problems.
Congrats to both economists.

[Meredith R. Miller]

http://lawprofessors.typepad.com/contractsprof_blog/2009/10/nobel-prize-in-economics-goes-to-academics-who-pay-attention-what-happens-in-the-real-world-and-cont.html

In the News | Permalink

TrackBack URL for this entry:

http://www.typepad.com/services/trackback/6a00d8341bfae553ef0120a5e590c1970b

Listed below are links to weblogs that reference Nobel Prize in Economics goes to Academics Who Pay Attention to “What Happens in the Real World” and Contracts:

Comments

As a business lawyer in Seattle, I can tell you that clients are irate when contracts try to cover all contingencies, which as the nobel prize winner shows, is impossible anyhow, and still angrier when the bad thing which happens to them is NOT covered in the contract. Total catch 22. I'm glad this guy has gotten the recognition he deserves.

Posted by: Mike Williams | Oct 17, 2009 7:38:51 PM

Post a comment