New Delhi, October 14: Daron Acemoglu, Simon Johnson and James A. Robinson have been awarded the 2024 Nobel Prize in Economics “for studies of how institutions are formed and affect prosperity.”
“The laureates’ model for explaining the circumstances under which political institutions are formed and changed has three components. The first is a conflict over how resources are allocated and who holds decision-making power in a society (the elite or the masses),” the Nobel Prize said in a post on X.
“The second is that the masses sometimes have the opportunity to exercise power by mobilizing and threatening the ruling elite; power in a society is thus more than the power to make decisions. The third is the commitment problem, which means that the only alternative is for the elite to hand over decision-making power to the populace,” the X post read.
This award is officially known as the 'Bank of Sweden Prize in Economic Sciences in Memory of Alfred Nobel.
The central bank established it as a memorial to Nobel, the 19th-century Swedish businessman and chemist who invented dynamite and established the five Nobel Prizes. The first winners were Ragnar Frisch and Jan Tinbergen in 1969.
Last year, Harvard University professor Claudia Goldin was awarded the 2023 Nobel Prize in Economics
