Jean Tirole

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Jean Tirole
Jean Tirole (cropped).jpg
Tirole in 2007
Born (1953-08-09) 9 August 1953 (age 65)
Troyes, France
NationalityFrench
Institution Toulouse 1 University Capitole
Toulouse School of Economics
Ecole des hautes études en sciences sociales
Field
Alma mater Massachusetts Institute of Technology
Paris Dauphine University
École nationale des ponts et chaussées
École Polytechnique
Doctoral
advisor
Eric Maskin
Doctoral
students
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. 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]

Economics Social science that analyzes the production, distribution, and consumption of goods and services

Economics is the social science that studies the production, distribution, and consumption of goods and services.

In economics, industrial organization or industrial economy 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 as between competition and monopoly, including from government actions.

Game theory is the study of mathematical models of strategic interaction between rational decision-makers. It has applications in all fields of social science, as well as in logic and computer science. Originally, it addressed zero-sum games, in which one person's gains result in losses for the other participants. Today, game theory applies to a wide range of behavioral relations, and is now an umbrella term for the science of logical decision making in humans, animals, and computers.

Contents

Education

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]

École Polytechnique French institution of higher education and research in Palaiseau

École polytechnique is a French public institution of higher education and research in Palaiseau, a suburb southwest of Paris. It is one of the most prestigious and selective French scientific and engineering schools, called grandes écoles in French. It is known for its ingénieur polytechnicien scientific degree program which is equivalent to both a bachelor and master of science. Its entrance exam, the X-ENS exam, is renowned for its selectivity with a little over 500 admitted students out of the 53 848 students enrolled in the preparatory programs for the French scientific and engineering schools entrance exams.

Paris Dauphine University grande école and an established public research and higher education institution in Paris, France

Paris Dauphine University, often referred to as Paris Dauphine or Dauphine, is a selective public research and higher education institution in Paris, France. It is the only institution in France to be both a grande école and University. Dauphine was founded as a faculty of economics and management in 1968 in the former NATO headquarters in western Paris, in the 16th arrondissement.

A Master of Advanced Studies or Master of Advanced Study is a postgraduate degree awarded in various countries. Master of Advanced Studies programs may be non-consecutive programs tailored for "specific groups of working professionals with well-defined needs for advanced degree work" or advanced research degrees. With the exception of the UK, advanced studies programs tend to be interdisciplinary and tend to be focused toward meeting the needs of professionals rather than academics.

Career

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]

Toulouse School of Economics School within Toulouse 1 University Capitol

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 masters 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 10th most productive research department of economics in the world and the 3rd in Europe by June 2018.

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.

Toulouse 1 University Capitole university

Toulouse 1 University Capitole is a French university established in 1968. It is located in the heart of the city of Toulouse, in southwestern France.

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.

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.

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]

The Econometric Society is an international society of academic economists interested in applying statistical tools to their field. It is an independent organization with no connections to societies of professional mathematicians or statisticians. It was founded on December 29, 1930, at the Stalton Hotel in Cleveland, Ohio. As of 2014, there are about 700 Elected Fellows of the Econometric Society, making it one of the most prevalent research affiliations.

The European Economic Association (EEA) is a professional academic body which links European economists. It was founded in the mid-1980s. Its first annual congress was in 1986 in Vienna and its first president was Jacques Drèze. The current president is Eliana La Ferrara. The Association currently has around 3000 members. Its objectives are:

".. . to contribute to the development and application of economics as a science in Europe; to improve communication and exchange between teachers, researchers and students in economics in the different European countries; and to develop and sponsor co-operation between teaching institutions of university level and research institutions in Europe "

Quantitative easing monetary policy

Quantitative easing (QE), also known as large-scale asset purchases, is a monetary policy whereby a central bank buys predetermined amounts of government bonds or other financial assets in order to inject money directly into the economy. An unconventional form of monetary policy, it is usually used when inflation is very low or negative, and standard expansionary monetary policy has become ineffective. A central bank implements quantitative easing by buying specified amounts of financial assets from commercial banks and other financial institutions, thus raising the prices of those financial assets and lowering their yield, while simultaneously lowering short term interest rates which increases the money supply. This differs from the more usual policy of buying or selling short-term government bonds to keep interbank interest rates at a specified target value.

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] . Fundenberg and Tirole also created a taxonomy of strategic effects in oligopolistic competition models [7] .

Oliver Hart (economist) British economist

Oliver Simon D'Arcy Hart is a British-born American economist, currently the Andrew E. Furer Professor of Economics at Harvard University. Together with Bengt R. Holmström, he received the Nobel Memorial Prize in Economic Sciences in 2016.

Drew Fudenberg is the Paul A. Samuelson Professor of Economics at MIT. His extensive research spans many aspects of game theory, including equilibrium theory, learning in games, evolutionary game theory, and many applications to other fields. Fudenberg was also one of the first to apply game theoretic analysis in industrial organization, bargaining theory, and contract theory. He has also authored papers on repeated games, reputation effects, and behavioral economics.

Awards

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.

Publications

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.

Books

Related Research Articles

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References

  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
  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 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. "Financial Crises, Liquidity, and the International Monetary System". Princeton University Press.
  16. "Balancing the Banks". Princeton University Press.
  17. Press, The MIT. "Inside and Outside Liquidity". The MIT Press.
Awards
Preceded by
Eugene F. Fama
Lars Peter Hansen
Robert J. Shiller
Laureate of the Nobel Memorial Prize in Economics
2014
Succeeded by
Angus Deaton