This year's Nobel prize for economics has been awarded to American economists Peter Diamond of MIT and Dale Mortensen of Northwestern University, as well as Christopher Pissarides of the London School of Economics for their work on employment and the labour market.
The Royal Swedish Academy of Sciences announced this lunchtime that it awarded the 10 million Swedish kronor prize (£947,000) to the three economists for their analysis of “markets with search frictions”, wrapping up the 2010 Nobel season. On Friday, the peace prize was awarded to jailed Chinese dissident Liu Xiaobo, which sparked calls for his release from the west and a furious condemnation by China.
Last year, the prize went to Americans Elinor Ostrom and Oliver Williamson for their pioneering research into how individuals co-operate and share common resources, marking the first time a woman had received the economics award.
American behavioural economists Richard Thaler at the University of Chicago and Robert Shiller of Yale University were the frontrunners for the prestigious annual prize, according to Ladbrokes.
The economics prize is not among the original awards established by Swedish industrialist Alfred Nobel in his 1895 will, but was created in 1968 by the Swedish central bank in his memory.
Since the economy prize was first awarded in 1969, more than 40 Americans have received it. Laureates include the former chief economist of the World Bank Joseph Stiglitz, Paul Krugman and Indian economist Amartya Sen, professor of economics and philosophy at Harvard, for his work on welfare economics.
Last year, the economics prize went to Americans Elinor Ostrom and Oliver Williamson.