According to a representative of the Nobel Committee, the two economists attracted attention because of their significant contributions in the field of economic non-market institutions.

“Both Elinor Ostrom and Oliver Williamson attracted our attention with headlines that appeared long before the outburst of the crisis, but their research is relevant for the world that will be built from now on,” the official said.

Ostrom was awarded this prize for her analysis of economic governance, especially the commons. “Elinor Ostrom has challenged the conventional wisdom that common property is poorly managed and should be either regulated by central authorities or privatized,” the Nobel Committee said. Ostrom is the first woman to win this award.

Williamson was rewarded for his analysis of economic governance, especially the boundaries of the firm. “Markets and hierarchical organizations, such as firms, represent alternative governance structures which differ in their approaches to resolving conflicts of interest. The drawback of markets is that they often entail haggling and disagreement. The drawback of firms is that authority, which mitigates contention, can be abused,” a representative of the Nobel Committee said.