French economist Jean Tirole has been awarded the 2014 Nobel Prize in Economics. The French professor received the Nobel Prize in 2014 award for his contributions through studies on strength and market regulation. Since the mid-1980s, Jean Tirole dedicated himself to researching various market failures, such as in the field of regulation and oligopoly.
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Various studies Tirole has made advances in understanding the problems that regulators often face. Tirole successes in answering important questions about how the government should regulate monopoly action. Jean Tirole has advanced smarter approaches to regulate large firms. Before his work, policymakers often favored blunt tools, such as price caps. While, Tirole has advocated more sector specific and tailored approaches.
The Secretary of the Royal Swedish Academy of Sciences Staffan Normark said that Tirole has played a major role in analyzing market competition. He said that this year's prize is about "taming powerful firms". Normark underlines the necessity Tirole review drafting regulations that govern how major corporations do not harm consumers by monopolistic actions. The Nobel award has already been granted to the founders of game theory and to applications of the new theory in different areas.
Through phone lines, Tirole expressed gratitude for having received the gift of a Nobel prize 2014. He outlines his studies about the politicization of pricing in the market. Tirole said that some of the industry does have a natural tendency to apply the policy monopoly. However, this policy basically is not necessarily a bad thing for the dynamic among corporations. In this regard, regulatory plays the important role. Regulators must ensure that it does not overwrite the negative consumer. The Nobel Committee added, Tirole studies on mergers, cartels, and monopolies and recommendations to the regulator are very important. Plus, now the European Union implement the single market.
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