The Nobel Prize in Economic Sciences, the sixth and final of the prestigious prizes, was awarded to two Americans: .Alvin E. Roth, 60, of Harvard University and Lloyd S. Shapley, 89, of the University of California, Los Angeles "for the theory of stable allocations and the practice of market design."
The Noble Committee release explains the real-world applications of Roth & Shapley's research:
This year's Prize concerns a central economic problem: how to match different agents as well as possible. For example, students have to be matched with schools, and donors of human organs with patients in need of a transplant. How can such matching be accomplished as efficiently as possible? What methods are beneficial to what groups? The prize rewards two scholars who have answered these questions on a journey from abstract theory on stable allocations to practical design of market institutions.And as the Wall Street Journal notes:
The academy said the researchers worked independently rather than together, but that 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."This year's award again confirms the United States' strong leadership in economic sciences. The Sveriges Riksbank Prize in Economic Sciences was first awarded in 1969; it follows the same rigorous principles of the original five prizes.
You can read the rest of the article at [Wall Street Journal]