Oliver Hart is one of the 2016 Nobel Laureates for his contributions to contract theory. He shares the prize with Bengt Holmström.
Dr. Hart explained that his work concerns contracts of complex character, for instance if conditions change over time then contracts need to be amended.
"When contracts are incomplete, who has residual control? Who has the right to make decisions about things that were not specified in the contract?," he explained.
Hart had a few words of wisdom for young people today:
"The advice I would give to young people is to tackle a challenging question as opposed to just doing little things," he said.
The Nobel Prize Award Ceremony and Banquet will be held on Saturday in Stockholm.