Harvard, MIT Economists Share Nobel Prize

The video discusses the Nobel Prize winners in contract theory, highlighting their contributions to executive compensation, public policy, and privatization. It explores the concept of moral hazard during the financial crisis and examines the role of debt markets, arguing against excessive transparency. The discussion emphasizes aligning incentives between parties with different interests and the evolution of contract theory since the 1970s.

What was the initial reaction of the speaker regarding the Nobel Prize winners?

How does Holmstrom's work relate to executive compensation and risk-taking?

What are the implications of moral hazard as discussed in the text?

What concerns does the speaker raise about the transparency efforts in debt markets?

In what ways has contract theory evolved since its inception in the 1970s according to the speaker?