The Prize in Economics 2009 - Prize announcement https://www.nobelprize.org/prizes/economic-sciences...

The Sveriges Riksbank Prize in Economic

Sciences in Memory of Alfred Nobel 2009

© The Nobel Foundation. © The Nobel Foundation.

Photo: U. Montan Photo: U. Montan
Elinor Ostrom Oliver E.
Prize share: 1/2 Williamson
Prize share: 1/2

The Sveriges Riksbank Prize in Economic Sciences in Memory of

Alfred Nobel 2009 was divided equally between Elinor Ostrom "for
her analysis of economic governance, especially the commons" and
Oliver E. Williamson "for his analysis of economic governance,
especially the boundaries of the firm"

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AB 2024. Sun. 21 Jan 2024. <https://www.nobelprize.org/prizes/economic-sciences/2009/summary/>

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Eleven laureates were awarded a Nobel Prize in 2023, for achievements that have conferred the greatest benefit to
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Prize announcement

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The Prize in Economics 2009 - Prize announcement https://www.nobelprize.org/prizes/economic-sciences...

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Announcement of the 2009 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel
to Elinor Ostrom and Oliver E. Williamson, presented by Professor Gunnar Öquist, Secretary General
of the Royal Swedish Academy of Sciences, on 12 October 2009.

Interview

0:00 / 0:00

Following the announcement, Professor Tore Ellingsen told senior editor Simon Frantz why the
shared Prize explains how non-market institutions, like natural resources managed by common
property and firms, exist and work.

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Press
See a Video ofrelease
the Interview

English
To cite this section
English
MLA (pdf)
style: Prize announcement. NobelPrize.org. Nobel Prize Outreach AB 2024. Sun. 21 Jan 2024. <https://www.nobelprize.org
/prizes/economic-sciences/2009/prize-announcement/>
Swedish
Swedish (pdf)

12 October 2009

The Royal Swedish Academy of Sciences has decided to award The Sveriges Riksbank Prize in
Economic Sciences in Memory of Alfred Nobel for 2009 to

Elinor Ostrom
Indiana University, Bloomington, IN, USA,

“for her analysis of economic governance, especially the commons”

and

Oliver E. Williamson
University of California, Berkeley, CA, USA,

“for his analysis of economic governance, especially the boundaries of the �rm”

Economic governance: the organization of cooperation

Elinor Ostrom has demonstrated how common property can be successfully

managed by user associations. Oliver Williamson has developed a theory where
business firms serve as structures for conflict resolution. Over the last three
decades these seminal contributions have advanced economic governance research
from the fringe to the forefront of scientific attention.

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The Prize in Economics 2009 - Prize announcement https://www.nobelprize.org/prizes/economic-sciences...

Economic transactions take place not only in markets, but also within firms, associations,
households, and agencies. Whereas economic theory has comprehensively illuminated the virtues
and limitations of markets, it has traditionally paid less attention to other institutional arrangements.
The research of Elinor Ostrom and Oliver Williamson demonstrates that economic analysis can shed
light on most forms of social organization.

Elinor Ostrom has challenged the conventional wisdom that common property is poorly managed
and should be either regulated by central authorities or privatized. Based on numerous studies of
user-managed fish stocks, pastures, woods, lakes, and groundwater basins, Ostrom concludes that
the outcomes are, more often than not, better than predicted by standard theories. She observes that
resource users frequently develop sophisticated mechanisms for decision-making and rule
enforcement to handle conflicts of interest, and she characterizes the rules that promote successful
outcomes.

Oliver Williamson has argued that 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. Competitive markets work relatively
well because buyers and sellers can turn to other trading partners in case of dissent. But when market
competition is limited, firms are better suited for conflict resolution than markets. A key prediction of
Williamson’s theory, which has also been supported empirically, is therefore that the propensity of
economic agents to conduct their transactions inside the boundaries of a firm increases along with
the relationship-specific features of their assets.

Elinor Ostrom, US citizen. Born in 1933 in Los Angeles, CA, USA. Ph.D. in Political Science in 1965
from the University of California, Los Angeles, USA. Arthur F. Bentley Professor of Political Science
and Professor at the School of Public and Environmental Affairs, both at Indiana University,
Bloomington, USA. Founding Director of the Center for the Study of Institutional Diversity, Arizona
State University, Tempe, USA.
www.cogs.indiana.edu/people/homepages/ostrom.html

Oliver E. Williamson, US citizen. Born in 1932 in Superior, WI, USA. Ph.D. in Economics in 1963
from Carnegie Mellon University, Pittsburgh, PA, USA. Edgar F. Kaiser Professor Emeritus of
Business, Economics and Law and Professor of the Graduate School, both at the University of
California, Berkeley, USA.
www2.haas.berkeley.edu/Faculty/williamson_oliver.aspx

The Prize amount: SEK 10 million, to be shared equally between the Laureates.
Contact: Erik Huss, Press Officer and Editor, phone +46 8 673 95 44, +46 70 673 96 50,
erik.huss@kva.se

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The Royal Swedish Academy of Sciences, founded in 1739, is an independent organization whose overall objective is
to promote the sciences and strengthen their in�luence in society. The Academy takes special responsibility for the
natural sciences and mathematics, but endeavours to promote the exchange of ideas between various disciplines.

To cite this section

MLA style: Press release. NobelPrize.org. Nobel Prize Outreach AB 2024. Sun. 21 Jan 2024. <https://www.nobelprize.org/prizes
/economic-sciences/2009/press-release/>

Nobel Prizes and laureates

Nobel Prizes 2023

Eleven laureates were awarded a Nobel Prize in 2023, for achievements that have conferred the greatest benefit to
humankind. Their work and discoveries range from e�ective mRNA vaccines and attosecond physics to fighting against
the oppression of women.

See them all presented here.

6 of 6 1/20/24, 22:18