Contracts: Theory and Practice

Abstract

[evdate 2016-11-30] Business School and IAS Nobel Prize popular science lecture. 'SBM Nobel popular lecture series 2016.'

Title from opening screen.

Abstract: "Contracts are really fundamental - we see them everywhere in society," Per Strömberg (Chairman of the Economic Sciences Prize Committee). The 2016 Nobel Prize in Economic Sciences was jointly awarded to Bengt Holmström and Oliver Hart "for their contributions to contract theory". Bengt Holmström was the founding father of the moral hazard model, whereas Oliver Hart made major breakthrough in the incomplete contracting theory. In this talk, the speaker will briefly introduce contract theory in the history of economic thought, the key ideas and applications of moral hazard models and incomplete contracting theory in relation to the real-life practice.

After receiving his PhD in economics at University of Mannheim, Prof Xiaojian Zhao has been an Assistant Professor of Economics at the HKUST since July 2010. His research focuses on contract theory, applied microeconomics and economics and psychology. Prof. Zhao's contributions in contract theory have been published numerous journals including Review of Economic Studies, one of the top five journals in economics.

Duration: 56 min.