Nobel announcement

[Dave Backus @ NYU]

The Swedish central bank announced this morning that the "Sveriges
Riksbank Prize in Economic Sciences in Memory of Alfred Nobel" has
been awarded to Peter Diamond (MIT), Dale Mortensen (Northwestern),
and Chris Pissarides (LSE). They're three very good economists, who
worked on markets with "search frictions" that keep them from working
perfectly. You can well imagine this makes it a relatively practical
tool, which explains why it has been so widely used over the last 40
years or so. The original applications were to labor markets -- think
about the challenges of finding a job. Since then we've seen
applications to monetary economics, finance, and many other things
(marriage, industrial organization, the internet). NYU work in this
vein includes notable contributions by Ricardo Lagos, Lasse Pedersen,
and Tom Sargent.

http://nobelprize.org/nobel_prizes/economics/laureates/2010/