Holmstrom, Bengt

Holmstrom was born on April 18, 1949 in Helsinki ^{[4] [5]} . Representative of the Swedish minority in Finland .

Holmstrom received a bachelor of science degree in mathematics from the University of Helsinki in 1972, and a master's degree in 1975 from Stanford University . The master's thesis was dedicated to operations research . He was awarded his doctorate in 1978 at the Stanford Graduate School of Business ^[4] .

He began teaching in 1978-1979 as an assistant professor at the Department of Systems and Operations Research at the (a higher education institution in Finland). He continued as an assistant professor of managerial economics in 1979-1980 and an associate professor in 1980-1983 at at Northwestern University . In 1983-1994 he held the position of full professor of economics at Yale University , and in 1985-1994 he was professor at the Edwin J. Beinecke Department of Economics and Management at Yale University Graduate School of Management. Since 1994, professor at the Department of Economics and Management, and since 1997, professor at the Paul Samuelson Department of Economics at the Massachusetts Institute of Technology and MIT Sloan School of Management . In 2003-2006 he was the head of the Department of Economics at the Massachusetts Institute of Technology ^[4] .

He was a member of the board of directors in organizations Kuusakoski Ltd (1989-2008), Prospectus (1994-1995), Nokia Corporation (1999-2012). He is currently an active member of the Board of Directors of the Finnish Business and Political Forum since 2005, the since 2005, and the Aalto University Foundation since 2008 ^[4] .

On October 10, 2016, Bengt Holmström and Oliver Hart (USA) were awarded the Nobel Prize in economics wording “for their contribution to the theory of contracts”. According to the Nobel Committee, the work of Holmstrom and Hart on the analysis of contractual arrangements laid the "intellectual foundations for developing policies and institutions in many areas, including bankruptcy law and political constitutions" ^[6] .

Family

Holmstrom is married to Anneli Kuusakoski, in 1974 their son Sam was born ^[4] .

In 1979, Holmström proposed the so-called “principle of informational content” (later it became known as the “Holmström principle”), the essence of which is the dependence of the remuneration of the agent on such quantities that are essential for assessing the actions of this agent and which are weakly influenced by factors which are not associated with the actions of the agent. Holmstrom explained that it is impossible to make agent remuneration dependent on those factors that substantially depend on the state of the economy. For example, this remuneration cannot be tied to the dynamics of the absolute value of the company's shares - it is more correct to take into account the dynamics of the value of these shares relative to the dynamics of the value of other shares in the same industry ^[6] .

Holmstrom also developed the theory of so-called “dynamic stimuli”. He formalized such cases of the relationship between employers and employees in which employees can show rather high efficiency in the absence of current incentives - focusing on the future: to create a good reputation and change jobs while exhausting opportunities in the current place ^[6] .

For his achievements he was repeatedly awarded ^[4] :

Some publications:

• Holmström BR En icke-linear lösningsmetod för allokationsproblem University of Helsinki, 1972
• Holmström BR Moral Hazard and Observability // Bell Journal of Economics, 10 (1), 1979. - pp. 74-91
• Holmström BR Moral Hazard in Teams // Bell Journal of Economics, 13 (2), 1982. - pp. 324-340.
• Holmström BR Equilibrium Long-Term Labor Contracts // Quarterly Journal of Economics, 98, 1983. - pp. 23-54
• Holmström BR, Milgrom P. Multitask Principal-Agent Analyses: Incentive Contracts, Asset Ownership, and Job Design // Journal of Law, Economics, and Organization, 7, 1991 - pp.24-52
• Holmström BR, Milgrom P. The Firm as an Incentive System // American Economic Review, 84 (4), 1994 - pp. 972–991
• Holmström BR, Roberts J. The Boundaries of the Firm Revisited // Journal of Economic Perspectives, 12 (4), 1998 - pp. 73-94
• Holmström BR, Tirole J. Private and Public Supply of Liquidity // Journal of Political Economy, Vol. 106, No. 1 (February 1998) - pp. 1-40 - DOI: 10.1086 / 250001
• Holmström BR Managerial Incentive Problems: A Dynamic Perspective // Review of Economic Studies, 66 (1), Jan. 1999 - pp. 169-182

• Tkachev I., Feinberg A. The Nobel Prize in economics was given for the theory of contracts (neopr.) . RBC (October 10, 2016). Date of treatment October 28, 2016. Archived October 28, 2016.
• Ponyatov A. The contract for the Nobel (Neopr.) . Science and Life (October 11, 2016). Date of treatment November 9, 2016. Archived November 9, 2016.
• Izmalkov S., Sonin K. Fundamentals of contract theory (2016 Nobel Prize in Economics - Oliver Hart and Bengt Holmström) // Problems of Economics . 2017. No. 1. P. 5-21.