Social contract theory is an ancient philosophical idea that states that an individual's ethical and political obligations relate to an agreement he has with every other individual within a society.

Two professors and economists—Oliver Hart and Bengt Holmström—received the Nobel Prize in Economic Sciences Monday for their insights into modern contract theory, specifically how businesses and ...

Contracts permeate our lives: just think of the contract with your employer or your insurance provider or your bank to get a loan -- even your marriage is a contract. But why are they designed the way ...

Oliver Hart from Harvard and MIT professor Bengt Holmström won this year's Nobel Memorial Prize in Economic Sciences for their study of contracts and human behaviour in business. The field is known as ...

Harvard’s Oliver Hart and Bengt Holmström from the Massachusetts Institute of Technology have won the Nobel Prize for economics for their research into contract theory. Their contributions have helped ...