PRALOY CHOWDHURY

ID:11507044
NOBEL PRIZE WINNERS IN
ECONOMICS IN 2001
THE THREE WINNERS ARE-

1.GEORGE A. AKERLOF
2.JOSEPH STIGLITZ
3.A. MICHAEL SPENCE
 GEORGE A. AKERLOF

 An economics professor at the University of California, Berkeley, was named the

2001 co-winner of the Nobel Prize in economic sciences in 10/10/01.
 Akerlof , described by a colleague as "a citizen of the profession," is the author of
a landmark study on the role of asymmetric information in the market for "lemon"
used cars.
 His research broke with established economic theory in illustrating how markets
malfunction when buyers and sellers — as seen in used car markets — operate
under different information.
 JOSEPH EUGENE STIGLITZ

• An American economist and a professor at Columbia University. He is a

recipient of the Nobel Memorial Prize in Economic Sciences (2001) and
the John Bates Clark Medal (1979).
• Risk Aversion-“When is a random variable ‘Y’ more variable than another
random variable ‘X’.” In this mathematically complex paper, Stiglitz and
Rothschild showed four plausible answers to this question, which led them to
write the second paper, in which they analyzed the likely economic effects of
increasing risk. Also He had invented Information asymmetry and Shapiro-
Stiglitz efficiency wage model.