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2009nobelprize.doc

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TheSverigesRiksbankPrizeinEconomicSciencesinMemoryofAlfredNobel2009 "forheranalysisofeconomicgovernance,especiallythecommons"" ElinorOstrom1/2USA IndianaUniversityBloomington,IN,USA b.1933 1 TheSverigesRiksbankPrizeinEconomicSciencesinMemoryofAlfredNobel2009 "forhisanalysisofeconomicgovernance,especiallytheboundariesofthefirm" OliverE.Williamson1/2USA UniversityofCaliforniaBerkeley,CA,USA b.1932 2 3 PressRelease 12October2009 Economicgovernance:theorganizationofcooperationElinorOstromhasdemonstratedhowcommonpropertycanbesuccessfullymanagedbyuserassociations. 4 OliverWilliamsonhasdevelopedatheorywherebusinessfirmsserveasstructuresforconflictresolution. 5 Overthelastthreedecadestheseseminalcontributionshaveadvancedeconomicgovernanceresearchfromthefringetotheforefrontofscientificattention. 6 Economictransactionstakeplacenotonlyinmarkets,butalsowithinfirms,associations,households,andagencies.Whereaseconomictheoryhascomprehensivelyilluminatedthevirtuesandlimitationsofmarkets,ithastraditionallypaidlessattentiontootherinstitutionalarrangements. 7 TheresearchofElinorOstromandOliverWilliamsondemonstratesthateconomicanalysiscanshedlightonmostformsofsocialorganization. 8 ElinorOstromhaschallengedtheconventionalwisdomthatcommonpropertyispoorlymanagedandshouldbeeitherregulatedbycentralauthoritiesorprivatized.Basedonnumerousstudiesofuser-managedfishstocks,pastures,woods,lakes,andgroundwaterbasins,Ostromconcludesthattheoutcomesare,moreoftenthannot,betterthanpredictedbystandardtheories. 9 Sheobservesthatresourceusersfrequentlydevelopsophisticatedmechanismsfordecision-makingandruleenforcementtohandleconflictsofinterest,andshecharacterizestherulesthatpromotesuccessfuloutcomes. 10 OliverWilliamsonhasarguedthatmarketsandhierarchicalorganizations,suchasfirms,representalternativegovernancestructureswhichdifferintheirapproachestoresolvingconflictsofinterest. 11 Thedrawbackofmarketsisthattheyoftenentailhagglinganddisagreement.Thedrawbackoffi