Winners of 2010 Nobel Prize in Economics Announced

The Nobel Memorial Prize in Economic Sciences, commonly called the Nobel Prize in Economics, was not originally included in Alfred Nobel´s will. Sveriges Riksbank established the award in memory of Nobel in 1968. We go now to our correspondents in Stockholm for news of this year's winners.

The last of this year's Nobel Prize winners was announced on Monday.

The 2010 Nobel Prize in Economic Sciences went to two Americans, Peter A Diamond and Dale T Mortensen, and to English Cypriot Christopher A. Pissarides, for their "... analysis of markets with search frictions."

Search frictions refer to the time and effort that buyers and sellers spend to locate each other in the market place. For example, in the labor market, workers are trying to find suitable jobs for themselves and employers are trying to find suitable workers. The process of matching the two together is referred to as "search frictions."

[Professor Lars Calmfors, Academy of Sciences, Stockholm University]:
"They have made research from the early 1970s and onwards on how to explain behavior in markets were there are problems for buyers and sellers to contact each other to get good matches. And the main use for it has been in the labor market were we are having simultaneously vacancies and unemployed persons."

Peter A. Diamond, Professor of Economics at the Massachusetts Institute of Technology (MIT), Cambridge, Massachusetts, USA, has mainly been focusing on how the search market works.

Dale T. Mortensen, Professor of Economics at Northwestern University, Evanston, Illinois, USA, and British Cypriot Christopher A. Pissarides , Professor of Economics at the London School of Economics and Political Science, UK, have focused on the theory of the labor market.

They have developed the Diamond-Mortensen-Pissarides model, the DMP-model, on the labour market.

This model describes how unemployment develops over time, how jobs are created and destroyed and it also describes wages.

The theory is commonly-used today as a model to describe the effects of economic policies in the labor sector and also in real estate and monetary economics.

NTD News, Stockholm, Sweden.

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[SatinPumps]

THE STARTING POINT OF REDUCING THE SEARCH FRICTION SHOULD BEGIN WITH SHARING WITH YOUR NEIGHBORS.

WHY DON'T THEY GIVE THIS SECTION TO NORWAY AND MADE THEM MORE EFFECTIVE WINNER PICKER BECAUSE I DON'T SEE ANY RESEMBLANCE AMONG PHYSICS, CHEMISTRY AND THIS KIND OF THEORY WHICH IS NOT UP TO THE LEVEL OF THE TWO AND TOTALLY UNRELATED.

AND THE LITERATURE SECTION SHOULD BE GIVEN TOO BUT I THINK YOUR MACKEREL NEIGHBORS ARE PRACTICALLY TOO DUMB TO PARTICIPATE ANYWAY IN A MEANINGFUL WAY.

[gpvowners2009]

Be fair, Economics Nobel Prize should be awarded to those Economists contributed best performance of economy to their countries, such as china,russia,brazil and india rather than those economist done bad job causing all financial crisis trouble in the world,like USA, UK and Europe 5 PIIGS. What the f is Nobel Economics prize means in these days. Always go to those economists coming from nations with poor performance economy. Their theories re bullshit & done no good to their countries!!

[Arrorn123]

good job with upload dude ;)

First!