The Nobel Prize for Economics has been jointly awarded to US scholars Alvin Roth and Lloyd Shapley.
Their work, which was conducted independently, focused on ways to match different agents as efficiently as possible.
The Royal Swedish Academy of Sciences said: “This year’s prize in economic sciences is about economic engineering. It is about how to practically design certain markets so that they work well. The context is situations where the task is to pair together two parties like physicians to hospitals or students to schools”.
Shapley, at the University of California, used game theory to study and compare different matching methods.
Harvard-based Roth followed up on Shapley’s results with empirical studies that have helped redesign existing institutions.