Law & Economics
Portrait of Bengt Holmstrom
Scholar portraitSource: MIT Sloan School of Management

Holmstrom

Bengt Holmstrom

Economist of incentives, moral hazard, and contract theory

contract theorymoral hazardincentive design

Official Source Note

MIT Sloan lists Holmstrom as Paul A. Samuelson Professor of Economics, Emeritus, and notes his 2016 Nobel Memorial Prize in Economic Sciences with Oliver Hart for contributions to contract theory.

Holmstrom is included because his work on moral hazard and incentive design provides core foundations for agency-cost analysis in corporate governance and financial contracting.

Source: MIT Sloan School of Management

Relevance to the Archive

Holmstrom strengthens the archive's treatment of agency costs by explaining how information, monitoring, and contract design shape managerial and financial incentives.

Representative Contributions

  • Moral Hazard and Observability (1979)
  • Managerial Incentive Problems: A Dynamic Perspective (1999)
  • Inside and Outside Liquidity (with Jean Tirole)

Works Included Here