Two Americans jointly win Nobel Prize for economics

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Americans Elinor Ostrom and Oliver Williamson have jointly won the Nobel Prize for economics for their analyses of economic governance, or the way authority is exercised in companies and economic systems. Ostrom is the first woman to win the economics prize. The Royal Swedish Academy of Sciences said their research demonstrated that economic analysis can shed light on most forms of social organization.

Elinor Ostrom is a political scientist at Indiana University. The 76-year-old professor has devoted her career to studying the interaction between people and natural resources.

In announcing her win, the Academy said Ostrom's research challenged conventional wisdom by showing how common resources can be managed successfully by the people using them, rather than by governments or private companies.

Ostrom said she was honored to be the first woman to win the Nobel economics prize, and hopes more women will follow.

Elinor Ostrom said, "So I consider, I think we are entering a new, we've already entered a new era, and we recognized that women have the capabilities of doing great scientific work, and yes, I appreciate that this is an honor to be the first woman, but I won't be the last."

The 77-year-old Williamson is an economist at the University of California, Berkeley. He was cited for his studies on how organizations are structured, and how that affects the cost of doing business.

His theory reveals that large private corporations exist primarily because they are efficient.

Based on his findings, it is better to regulate undesirable corporate behavior directly, rather than making policies that restrict the size of corporations.