Jean Tirole wins Nobel Prize for Economics – live

The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel has been won by French economist Jean Tirole

12.44pm BST

Winning the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel is clearly an emotional moment – the highlight of many glittering careers….

"It took me half an hour to recoup from the call" Jean Tirole on being awarded the Prize.‘s interview coming up soon!

12.43pm BST

BREAKING NEWS: #nobelprize2014 in Economic Sciences to French Jean Tirole @UT1Capitole

12.40pm BST

The Swedish Academy of Sciences are collecting messages of congratulation to Jean Tirole, here.

12.37pm BST

And that was the end of the press conference – Jean Tirole heads off to celebrate.

12.37pm BST

Last question — is this effectively a political choice, given that regulating Europes banking sector is such a hot topic today?

The Academy give a cute answer — it is not to a very large extent a political choice.

12.32pm BST

The plaudits are coming in….

Congratulations to Jean Tirole for winning the Nobel Prize for #Economics.

12.29pm BST

Why Tirole, and why now?

The Academy explains that the area of mergers, cartels, and monopoly regulation has become much more important since the 1980s, when government began to deregulate natural monopolies.

12.24pm BST

And how can your work be used in banking sector, professor?

Tirole cites the lessons of the financial crisis, which showed how counterparty risk fuelled the near meltdown of the banking system.

12.20pm BST

Professor Tirole is asked how his work can be used to keep a web giant like Google in check.

Tirole explains that his team have shown is that the antitrust economics of such markets, such as web search or credit/debit card supply, are different from other economies.

12.14pm BST

Tirole is on the telephone line now — saying that he is so moved by the award that he may not be able to answer questions. But hell try.

12.13pm BST

The Royal Swedish Academy of Sciences says Tirole is one of the most influential economists of our time.

One of our greatest living economists, who has made a huge contribution to economics.

Many industries are dominated by a small number of large firms or a single monopoly. Left unregulated, such markets often produce socially undesirable results prices higher than those motivated by costs, or unproductive firms that survive by blocking the entry of new and more productive ones.

From the mid-1980s and onwards, Jean Tirole has breathed new life into research on such market failures. His analysis of firms with market power provides a unified theory with a strong bearing on central policy questions: how should the government deal with mergers or cartels, and how should it regulate monopolies?

12.11pm BST

Tirole, working with other economists, helped to analyse how regulators are hampered by asymmetric information — ie, the big company has a better idea about whats happening in their market than the regulator themselves.

12.09pm BST

Tirole, of Toulouse University, has received the award for his work on how to regulate large firms, the Academy explains.

He has played a major role examining competition, and analysing how large firms should be regulated to prevent consumers being damaged by monopoly behaviour.

12.05pm BST

And the winner is: Jean Tirole, the French economist, for his work on market power and regulation.

He is being recognised for his work taming powerful firms.

12.02pm BST

Staffan Normark, Permanent Secretary of the Royal Swedish Academy of Sciences, is announcing todays choice – in Swedish and then English…..

12.01pm BST

Here we go……

11.57am BST

Youngest Nobel prize winner in economics was 51. Don’t expect a #MalalaYousafzai today.

11.55am BST

Just five minutes to go!

Reminder, theres a live feed from Stockholm playing at the top of this blog (also streaming on YouTube here)

11.51am BST

Twitter is buzzing with guesses too:

Economics Nobel prize in 15mins, any guesses ? Stanford’s Mark Granovetter is my guess for winner this year.

Econ Nobel predictions My econ Nobel prediction in two words: Ben Bernanke.

11.38am BST

Tension is building in the Royal Swedish Academy of Science, in Stockholm, as the clock ticks towards noon BST.

If you play the embedded video at the top of this page, you can hear the quiet chatter in the Session Hall.

11.29am BST

And heres a fine chart from our Graphics department, showing the history of the Nobel Prizes in numbers:

11.19am BST

Stockholm-based journalist Oliver Gee has crunched the numbers:

What’s 2 percent likely to be a woman, 67 years old, and 8 million kronor richer? The average Nobel Laureate for Economics.

11.02am BST

The Nobel Prize team must have known wed have some dead air to fill before the winner is announced in an hours time, as theyve created a list of facts about previous winners.

#NobelFacts 43 of the 74 Laureates in Economic Sciences (1969-2013) are born in USA, that is 58%

10.52am BST

Fancy winning the Nobel prize for economics yourself? These are the areas that have found favour in previous years:

TOP 10 FIELDS in Economic Sciences (1969-2013). One Laureate may be listed under several fields:

10.41am BST

Another option is Robert Barro of Harvard, who was recently ranked the third most influential economist in the world.

Guy Bentley of City AM adds:

He is one of the founders of the new classical economics and in 2011 delivered the Institute of Economic Affairs annual Hayek lecture on the economic crisis facing the governments of the developed world.

10.34am BST

City AM also identify Israel Kirzner and William Baumol as possible winners:

The 84 year old Israel Kirzner is certainly a dark horse. A follower of the Austrian school of economics, Kirzner received his PhD from New York University in 1957, where he studied under the classical liberal icon Ludwig von Mises. Kirzners research on entrepreneurship has criticised neoclassical perfect competition models and how coordination in the market emerges from discoordiantion.

Baumol is recognised for a host of achievements in the discipline. In his 1968 paper Entrepreneurship in Economic Theory he said the firm without the entrepreneur is Hamlet without the prince. Furthermore, noted economist Tyler Cowen has tipped Baumol for the prize.

2014 Nobel Prize in economics: Runners and riders

10.32am BST

Thomson Reuters has analysed academic citations to come up with a list of plausible winners.

They include US academics Philippe M. Aghion and Peter W. Howitt for their work on Schumpeterian growth theory (the idea that creative destruction. helps to drive economies forward.)

10.27am BST

As usual, theres a flurry of speculation over who might win this years award.

And two British economists – Sir Anthony Atkinson and Angus Deaton – are in the mix, for their work on inequality, consumption and wellbeing.

They are mentioned as possible winners because inequality is the subject du jour following publication of Thomas Pikettys hit book Capital earlier this year.

Atkinson, a senior research fellow of Nuffield College, Oxford since 2005, has an inequality index named after him. His book Public Economics in an Age of Austerity, was published this year.

10.15am BST

Youll be able to watch the announcement by clicking the embedded video at the top of this live blog.

The announcement is due in a little under two hours — theres a handy clock ticking down on the website

10.12am BST

Good morning. Before the complaints rush in, lets clear something up. Were not here to cover the Nobel Prize for Economics. That award doesnt technically exist.

Instead, were about to discover who has won The 2014 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel.

The first falling leaf, the first pumpkin latte, the first complaint that economics isn’t a real Nobel. The eternal rhythm of the seasons

Continue reading…

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