marie yanaka, nhk world. >>> two u.s.ased professors have shared this year's nobel prize in economic sciences, they're being honored for research that shows how contracts deal with conflicting inteterests. >> the royal swedish academy of sciences has decided to award the prize in econonomic science in memory of alfred nobel, for 2016 to oliver hart and ben bengt holmstrom for theirir contributions to contract theory. >> oliver hart was born in england, a professor at harvard university. bengt homestrom is from finland, a professor at massachusetts institute of technology. the royal swedish academy of sciences awarded the prize to two professors for developing contract theory, a general framework to understanding how contracts work. in the 1970s, holmstrom showed how a principal, such as company shareholders should design a contract for an agent such as the ceo. he explained how the contract should link the agent's pay to performance. in the 1980s, hart made a major contribution to the understanding of incomplete contracts