(CNN) – Harvard and M.I.T. have 2 new Nobel Prize winners in the field of economics. Their work could one day shape business, finance and public policy. Between Harvard and M.I.T., in some circles, talks of winning a Nobel Prize are routine conversations still.
Bengt Holmström, an M.I.T. economist said, “one doesn’t really expect it in some ways.”
Both campuses celebrating today, M.I.T.’s Bengt Holmström and Harvard’s Oliver Hart won the 2016 Nobel Prize in economics.
Holmström said, “In the last six years and the financial crisis has been intellectually very rewarding.”
The pair awarded the prestigious prize for their contribution to contract theory which helps shape everything from salaries and incentives of CEOs to whether or not public services like schools or prisons are better publicly or privately owned.
Holmström said, “We don’t think much about the level that is economics doesn’t really have an opinion on the level. I don’t have a standard on whether it’s too high or too low it is what it is.”
Oliver Hart suggests says the founders of companies should give up cash incentives for greater control.
Hart said, “Because in fact there’s eventuality of being kicked out is actually terrible it was my baby and now I’m no longer in charge of it.”
Hart among 48 Harvard faculty members to be awarded the Nobel Prize. Holmstrom the fifth to win while a member of M.I.T.’s department of economics bragging rights for both men and institutions.