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Americans Alvin Roth and Lloyd Shapley win Nobel Prize economics award

  • American academics Alvin Roth and Lloyd Shapley have won the 2012 Nobel Prize in economics.

    The Royal Swedish Academy of Sciences cited the pair for their work on the "theory of stable allocations and practice of market design".

    The work looks at the best possible way to allocate resources, such as in school admissions or organs to patients who need transplants.

    The committee praised their work as a form of economic engineering, designing markets for situations where traditional market mechanisms based on price are not applicable or do not work well.

    "Even though these two researchers worked independently of one another, the combination of Shapley's basic theory and Roth's empirical investigations, experiments and practical design has generated a flourishing field of research and improved the performance of many markets," the Academy said on Monday.

    Roth is a professor at Harvard and Shapley teaches at the University of California in Los Angeles.

    The prize money for the two academics is $1.2million, which will be split between them.