Jean Tirole

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Jean Tirole
Jean Tirole 2019.jpg
Tirole in 2019
Born (1953-08-09) 9 August 1953 (age 67)
Troyes, France
Institution Toulouse 1 University Capitole
Toulouse School of Economics
Ecole des hautes études en sciences sociales
Alma mater Massachusetts Institute of Technology
Paris Dauphine University
École nationale des ponts et chaussées
École Polytechnique
Eric Maskin
Roland Bénabou
Awards John von Neumann Award (1998)
BBVA Foundation Frontiers of Knowledge Award (2008)
Nobel Memorial Prize in Economics (2014)
Information at IDEAS / RePEc

Jean Tirole (born 9 August 1953) is a French professor of economics at Toulouse 1 Capitole University. He focuses on industrial organization, game theory, banking and finance, and economics and psychology. In 2014 he was awarded the Nobel Memorial Prize in Economic Sciences for his analysis of market power and regulation. [1] [2]



Tirole received engineering degrees from the École Polytechnique in Paris in 1976, and from the École nationale des ponts et chaussées in 1978. He graduated as a member of the elite Corps of Bridges, Waters and Forests. Tirole pursued graduate studies at the Paris Dauphine University and was awarded a DEA degree in 1976 and a Doctorat de troisième cycle in decision mathematics in 1978. In 1981, he received a Ph.D. in economics from the Massachusetts Institute of Technology for his thesis titled Essays in economic theory, under the supervision of Eric Maskin. [3]


Tirole is chairman of the board of the Jean-Jacques Laffont Foundation at the Toulouse School of Economics, and scientific director of the Industrial Economics Institute (IDEI) at Toulouse 1 University Capitole. After receiving his doctorate from MIT in 1981, he worked as a researcher at the École nationale des ponts et chaussées until 1984. From 1984–1991, he worked as Professor of Economics at MIT. His work by 1988 helped to define modern industrial organization theory by organising and synthesising the main results of the game-theory revolution vis-à-vis understanding of non-competitive markets. [4]

From 1994 to 1996 he was a Professor of Economics at the École Polytechnique. Tirole was involved with Jean-Jacques Laffont in the project of creating a new School of Economics in Toulouse. He is Engineer General of the Corps of Bridges, Waters and Forest, serving as Chair of the Board of the Toulouse School of Economics, Visiting Professor at MIT and Professor "cumulant" at the École des hautes études en sciences sociales since 1995.

He was president of the Econometric Society in 1998 and of the European Economic Association in 2001. Around this time, he was able to determine a way to calculate the optimal prices for the regulation of natural monopolies and wrote a number of articles about the regulation of capital markets—with a focus on the differential of control between decentralised lenders and the centralised control of bank management. [4] Tirole has been a member of the Académie des Sciences morales et politiques since 2011, the Conseil d'analyse économique since 2008 and the Conseil stratégique de la recherché since 2013. In the early 2010s, he showed that banks generally tend to take short-term risks and recommended a change in quantitative easing towards a more quality-based market stimulation policy. [4]

Contributions to economics

Tirole's textbook, The Theory of Industrial Organization, synthesised modern models of oligopolistic competition, analysing various cases where industries consist of a small number of firms with significant market power. He and Oliver Hart published a paper showing the conditions in which a vertical merger can result in foreclosure. [5] Rochet and Tirole analysed the implications of 2-sided markets for competition policy. [6] Fudenberg and Tirole also created a taxonomy of strategic effects in oligopolistic competition models. [7]


Tirole was awarded the Nobel Memorial Prize in Economic Sciences in 2014 for his analysis of market power and the regulation of natural monopolies. Tirole received doctorates honoris causa from the Université libre de Bruxelles in 1989, the London Business School and the University of Montreal in 2007, the University of Mannheim in 2011, the Athens University of Economics and Business and the University of Rome Tor Vergata in 2012 as well as the University of Lausanne in 2013. [8]

Tirole also received the inaugural BBVA Foundation Frontiers of Knowledge Award in the Economics, Finance and Management category in 2008, the Public Utility Research Center Distinguished Service Award (University of Florida) in 1997, and the Yrjö Jahnsson Award of the Yrjö Jahnsson Foundation and the European Economic Association in 1993. He is a foreign honorary member of the American Academy of Arts and Sciences (1993) and of the American Economic Association (1993). He has also been a Sloan Fellow (1985) and a Guggenheim Fellow (1988). He was a fellow of the Econometric Society in 1986 and an Economic Theory Fellow (Society for the Advancement of Economic Theory) in 2011. In 2013 Tirole was elected an Honorary Fellow of the Royal Society of Edinburgh. [9]

In 2007 he was awarded the highest award (the Gold Medal or médaille d'or) of the French CNRS. In 2008, he received the Prix du Cercle d'Oc; in 2009, he received an Outstanding Contributions to the Profession Award (International Association for Energy Economics); in 2010, he was granted the Chicago Mercantile ExchangeMathematical Sciences Research Institute (CME-MSRI) prize in Innovative Quantitative Innovations in Finance, the Tjalling Koopmans Asset Award (Tilburg University), and the "Prix Claude Levi-Strauss". He is among the most influential economists in the world according to IDEAS/RePEc. [10] Besides his numerous academic distinctions, he was the recipient of the Gold Medal of the city of Toulouse in 2007, a Chevalier de la Légion d'honneur since 2007 and an Officer in the Ordre national du Mérite since 2010.


Tirole has published about 200 professional articles in economics and finance, as well as 10 books, including The Theory of Industrial Organization, Game Theory (with Drew Fudenberg), A Theory of Incentives in Procurement and Regulation (with Jean-Jacques Laffont), The Prudential Regulation of Banks (with Mathias Dewatripont), Competition in Telecommunications (with Jean-Jacques Laffont), Financial Crises, Liquidity, and the International Monetary System, and The Theory of Corporate Finance. His research covers industrial organization, regulation, game theory, public economics, banking and finance, psychology and economics, international finance and macroeconomics.


Related Research Articles

In economics, industrial organization is a field that builds on the theory of the firm by examining the structure of firms and markets. Industrial organization adds real-world complications to the perfectly competitive model, complications such as transaction costs, limited information, and barriers to entry of new firms that may be associated with imperfect competition. It analyzes determinants of firm and market organization and behavior on a continuum between competition and monopoly, including from government actions.

In economics, contract theory studies how economic actors can and do construct contractual arrangements, generally in the presence of information asymmetry. Because of its connections with both agency and incentives, contract theory is often categorized within a field known as Law and economics. One prominent application of it is the design of optimal schemes of managerial compensation. In the field of economics, the first formal treatment of this topic was given by Kenneth Arrow in the 1960s. In 2016, Oliver Hart and Bengt R. Holmström both received the Nobel Memorial Prize in Economic Sciences for their work on contract theory, covering many topics from CEO pay to privatizations. Holmström (MIT) focused more on the connection between incentives and risk, while Hart (Harvard) on the unpredictability of the future that creates holes in contracts.

Jean-Jacques Marcel Laffont was a French economist specializing in public economics and information economics. Educated at the University of Toulouse and the Ecole Nationale de la Statistique et de l'Administration Economique (ENSAE) in Paris, he was awarded the Ph.D. in Economics by Harvard University in 1975.

Screening in economics refers to a strategy of combating adverse selection, one of the potential decision-making complications in cases of asymmetric information, by the agent(s) with less information. The concept of screening was first developed by Michael Spence (1973), and should be distinguished from signalling, a strategy of combating adverse selection undertaken by the agent(s) with more information.

The industrial economics institute' (IDEI) is a research center in economics located in Toulouse (France) within the Toulouse 1 University Capitole. It was founded in 1990 by Jean-Jacques Laffont. The IDEI serves a dual purpose: allowing the University of Toulouse I to be competitive at an international level; providing administrations and companies with an interface between their activities and economic research.

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Bengt Holmström Finnish economist and Nobel laureate (born 1949)

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Mathias Dewatripont

Mathias François Dewatripont is a Belgian economist and professor at the Université libre de Bruxelles (ULB) and visiting professor at the Massachusetts Institute of Technology (MIT).

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<i>Catalyst Code</i>

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Frederic Michael Scherer is an American economist and expert on industrial organization. Since 2006, he continues as a Professor of Economics at the JFK School of Government at Harvard University.

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Toulouse School of Economics

The Toulouse School of Economics is a school within the Toulouse 1 University Capitole, a constituent college of the Federal University of Toulouse Midi-Pyrénées, located in Toulouse, France. While the core focus is economics, TSE offers a range of academic degrees spanning licences, several master's degrees and a doctoral (PhD) programme. Classes are taught in both French and English. Currently, the school has around 2400 students from over 90 nationalities and 150 full faculty members. According to RePEc, TSE was ranked as the 9th most productive research department of economics in the world and the 3rd in Europe by April 2019.

A Markov perfect equilibrium is an equilibrium concept in game theory. It has been used in analyses of industrial organization, macroeconomics, and political economy. It is a refinement of the concept of subgame perfect equilibrium to extensive form games for which a pay-off relevant state space can be identified. The term appeared in publications starting about 1988 in the work of economists Jean Tirole and Eric Maskin.

Xavier Vives is a Spanish economist regarded as one of the main figures in the field of industrial organization and, more broadly, microeconomics. He is currently Chaired Professor of Regulation, Competition and Public Policies, and academic director of the Public-Private Sector Research Center at IESE Business School in Barcelona.

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  1. Sveriges Riksbank's Prize in Economic Sciences in Memory of Alfred Nobel 2014., Sveriges Riksbank, 13 October 2014, retrieved 13 October 2014
  2. Biography of Jean Tirole Archived 18 October 2014 at the Wayback Machine
  3. "Essays in economic theory / by Jean Tirole". MIT Library catalog. Retrieved 13 October 2014.
  4. 1 2 3 "Jean Tirole: Market Power and Regulation". Royal Swedish Academy of the Sciences. 13 October 2014.
  5. Tirole, Jean (1988). The theory of industrial organization . The MIT Press. ISBN   9780262200714. OCLC   464151427.
  6. Rochet, Jean-Charles; Tirole, Jean (1 June 2003). "Platform Competition in Two-Sided Markets". Journal of the European Economic Association. 1 (4): 990–1029. doi: 10.1162/154247603322493212 . ISSN   1542-4766.
  7. "The Fat Cat Effect, the Puppy Dog Ploy and the Lean an d Hungry Look" (PDF).
  8. (in Italian) Laurea magistrale honoris causa Jean Tirole
  9. "Professor Jean Marcel Tirole HonFRSE - The Royal Society of Edinburgh". The Royal Society of Edinburgh. Retrieved 1 February 2018.
  10. "Economist Rankings at IDEAS" . Retrieved 15 October 2014.
  11. Fudenberg, Drew; Tirole, Jean (11 June 2018). Dynamic Models of Oligopoly. Routledge. ISBN   9780415269179 via Google Books.
  12. Press, The MIT. "Game Theory". The MIT Press.
  13. Press, The MIT. "The Prudential Regulation of Banks". The MIT Press.
  14. Press, The MIT. "Competition in Telecommunications". The MIT Press.
  15. Tirole, Jean (21 July 2002). Financial Crises, Liquidity, and the International Monetary System. Princeton University Press. ISBN   9780691099859.
  16. Balancing the Banks. Princeton University Press. 9 May 2010. ISBN   9780691145235.
  17. Press, The MIT. "Inside and Outside Liquidity". The MIT Press.
Preceded by
Eugene F. Fama
Lars Peter Hansen
Robert J. Shiller
Laureate of the Nobel Memorial Prize in Economics
Succeeded by
Angus Deaton