2016 Economics Nobel Prize Explained: Contract Theory | Hanlon Financial Systems Center

2016 Economics Nobel Prize Explained: Contract Theory

2016 Economics Nobel Prize Explained: Contract Theory

seminar date: 
Thursday, October 27, 2016 - 6:15pm
seminar location: 
BC122
Dr. Stefano Bonini, Dr. Hamed Ghoddusi
Abstract: 

2016 Economics Nobel Prize is awarded to two prominent scholars of the contract theory: Berg Holmstrom (MIT) and Oliver Hard (Harvard). Contract Theory deals with contractual setups, in which at least one party has an imperfect information of the other parties' preferences or actions. Over the past three decades, the findings and results of this field have been widely used in a range of applications in corporate finance, industrial organization, regulation, macroeconomics, accounting, health economics, and many other disciplines of economics, finance, and management. In this talk we first review the fundamental issues and concepts of contract theory and then will discuss the specific contributions of Holmstrom (complete contracts) and Hart (incomplete contracts). 

 

Bio: 

Stefano Bonini is an Assistant Professor at the Stevens Institute of Technology School of Business in New York. He has been a visiting faculty at NYU Stern since 2009. Before joining Stevens, Stefano has been an assistant professor at Bocconi University in Milan  Italy, and a Visiting PhD at Harvard University and MIT. Prof. Bonini’s research focuses on how companies raise and manage capital in financial markets, on the quality of information provided by equity and debt analysts and on the Venture Capital and Private Equity industry. His research has been published on Financial Management, Journal of Business Ethics, Corporate Governance, Journal of Business Finance and Accounting, Small Business Economics and European Financial Management. He serves as academic advisor to the AXA foundation in Paris and the Unipol Academy in Milan and has extensively consulted for major private equity funds and investment banks.

Hamed Ghoddusi is an Assistant Professor of Finance at the School of Business, Stevens Institute of Technology. Before joining Stevens he was a postdoctoral associate at MIT's Engineering Systems Division (ESD). He has received his Ph.D. from the Vienna Graduate School of Finance (VGSF) and holds degrees in Quantitative Economics, Management Science, and Industrial Engineering from the Institute for Advanced Studies (Vienna) and Sharif University of Technology (Tehran).  His research interests include Resource and Energy Economics, Asset-Pricing, Society-Centered Financial Innovations and Contracts, and Risk Management. Hamed has been a visiting scholar/consultant at the International Institute for Applied Systems Analysis (IIASA), Oxford Institute for Energy Studies (OIES), UT Austin, UC Berkeley, UNDP, and UNIDO.