Courtesy of Bruce Krasting.
The fellows who won the Nobel Prize for Economics, Alvin Roth and Lloyd Shapley, got the prize for a Micro Economic/mathematical analysis. They came up with models/algorithms that make the process of connecting needs to resources better/faster. This appears to be promising stuff that will have broad applications in years to come. The award sure sounds important:
“For the theory of stable allocations and the practice of market design.”
The 2012 Nobel for Economics is not unlike the prize that was awarded to Myron Scholes and Bob Merton for their pioneering work back in 1997. The description from the deep thinkers in Stockholm for that award:
“For a new method to determine the value of derivatives”
The Black-Scholes model is the basis upon which 100s of trillions of derivative contracts have been created. We know what an important contribution to growth and prosperity derivatives have proven to be, right?
…
