French scientist won the Nobel Prize in Economics 2014

French scientist Jean Tirole has just been awarded the Nobel Prize in 2014 for his research on how to manage and regulate large business empires in the market.

At 18:00 on October 13 (Hanoi time), the Royal Swedish Academy of Sciences announced the owner of this year's Nobel Prize in Economics, belonging to the French scientist - Jean Tirole. His award-winning research deals with how to manage large corporations and companies in the market.

Like other Nobel laureates, the scientist will be awarded an 8 million kronor prize (equivalent to $ 1.1 million).

Jean Tirole was born in 1953 in Troyes (France) and earned his Ph.D. in 1981 at the Massachusetts Institute of Technology (MIT - USA). He is currently the Scientific Director at the Institute of Economic Industry, Toulouse School of Economics, University of Toulouse 1 Capitole (France).

Jean Tirole - French scientist receives the Nobel Prize in economics this year.(Photo: AFP)

Tirole is considered one of the most influential economists today. He has had many important studies in several areas. But the most significant is finding ways to understand and manage industries dominated by a handful of companies.

Currently, many industries in the world are only manipulated, or even monopolized, by several companies. Without management, the market will generate many unexpected problems, such as high product prices or new companies cannot penetrate.

Since the 1980s, Jean Tirole has begun studying this issue. His analysis of the big power companies in the market helped solve the problem "How can the Government manage mergers or acquisitions?" and " How to manage monopoly companies".

Before Tirole, researchers and policy makers have always sought to set regulations for all industries. They prioritize simple policies, such as applying ceiling prices to monopolies or banning partners from cooperating, and allowing links between companies with different roles in the value chain.

Tirole pointed out that these measures can work well under certain conditions, but will make the market hurt in the remaining cases. Applying a ceiling price may cause companies to find ways to reduce costs. This is good for society. But will also make the company's profits skyrocket. This is also harmful to society. Cooperation in manipulating price in the market is harmful, but patent cooperation is beneficial. The merger of a company with its own suppliers can promote innovation, but will also distort competition.

Management policy will be best if applied carefully depending on the industry. In many articles and book titles, Jean Tirole has provided a general policy design framework, applicable to many industries, from telecommunications to banking. Based on these studies, governments will take better measures to encourage large companies to increase productivity, but not harm competitors and customers.

Previously, in 2013, Nobel Economics was awarded to three American scientists, Mr. Eugene F. Fama - University of Chicago (USA), Mr. Lars Peter Hansen - University of Chicago (USA) and Mr. Robert J. Shiller - Yale University (USA) for the analysis of asset prices.

The title has been changed.