MAKE THE WORLD A BETTER PLACE THROUGH ECONOMIC RESEARCH

Žan Tirol, rođen u Francuskoj 1953. godine, dobitnik je Nobelove nagrade za ekonomiju u 2014. godini, Profesor na univerzitetu u Tuluzu sa dva doktorata koje je stekao na Pariskom univerzitetu i na Institutu Tehnologije u Masačusetsu MIT na temu Matematika u privrednom odlučivanju. Osim toga, ima počasni doktorat sa Slobodnog univerziteta u Briselu i univerziteta u Montrealu i Manhajmu. U saopštenju švedske Kraljevske akademije Nobelovu nagradu je dobio za značajna teorijska istraživanja u brojnim privrednim oblastima, ali, iznad svega, pojasnio je kako da se industrija shvati i prilagodi moćnim firmama na tržištu. U svom plodnom istraživačkom radu uspeo je da odredi način izračunavanja optimalnih cena za regulisanje prirodnih monopola. Autor je preko 100 članaka iz ekonomije i finansija i šest knjiga uključujući, između ostalih, Teoriju organizacije industrije, Teoriju igara i Takmičenje u telekomunikacijama. Njegova istraživanja odnose se na: industrijsku privredu, korporativne finansije, međunarodnu ekonomiju i odnos između privrede i psihologije.


Field of Research
According to the official statement of the Swedish Royal Academy, he was awarded the Nobel Prize for his significant theoretical research in various economic fields, but, above all, for clarifying how to understand and regulate industries with a few powerful firms.In his fruitful research activities, he managed to determine the method for calculating the optimal prices for regulating natural monopolies.He has authored a series of books and articles, in which he "suggested the general framework for designing regulations that can be applied to a number of industries, from banking to telecommunications", as stated by the Swedish Royal Academy.Many of his works deal with the regulation of capital market, underlining the difference between the control of decentralized creditors and centralized controls of the bank's management.Altogether, Tirole has published over 100 papers in economics and finance, and six books, including, among others, The Theory of Industrial Organization (1988), Game Theory (1991), and Competition in Telecommunications (1999).
Particularly important is his contribution to the research on how to regulate industries with a few powerful firms.As he underlines, most industries are dominated by a single monopolist or a few large companies.Regulation is in such cases almost non-existent, which results in high prices and unproductive companies, whose struggle for survival prevents the entry of new and productive companies.The prestigious Novel Prize was awarded to him exactly for his research on how to regulate and control large firms so as to stop them from destroying their consumers through monopolistic behavior.
In the past two decades of the 20 th century many European countries underwent deregulation accompanied by privatization, whereas the European Union witnessed the creation of the single market.In order to understand the consequences of these changes, it was necessary to integrate the theories of industrial organization, economic contract theory and some other fields.Bearing in mind the significance of this segment and its further development, the selection of Tirole as the Nobel Prize winner is quite understandable.Namely, he used to be a candidate for this prestigious award for several years and, thus, his eventual acknowledgement came as no surprise.
O MIT-u, na kome je 1981.dobio drugi doktorat, Tirol ima samo reči hvale.Ističe da je od šezdesetih godina prošlog veka MIT opt for less restrictive incentives and amend the contract gradually.3. Mastering regulation -i.e. the collision between regulators and firms due to the poorly designed mechanism.Laffont and Tirole indicated that the framework should take into account the risk of collision and information asymmetry.4. Regulation of oligopolies -"Using game theory, Tirole and Fudenberg analyzed the long-term effects of strategic innovations and defined the circumstances in which a company should re-invest in its capacities in order to deter the entry of potential competitors." 5. Analysis of vertical integrations and their implications in specific industrial sectors -In his research Tirole examined the ways other economists think about the protection of competition policy.In several co-authored papers he described the long-present view that monopolistic enterprises, which are in the production chain, may profit only in their field of work, along with the fact that monopolists can also appropriate the rent from the neighboring market.Tirole believes that "the right of competition should take into account the fact that vertical integrations can considerably limit the competition, but that at the same time they encourage investments into research and development".6. Analysis of new market forms, i.e. twosided platform markets -It is there that the interaction between the buyer and the seller takes place by means of economic platforms.

His Parents' Wish Come True -Through Education to Doctorate
Jean Tirole was born on 9 August 1953 in Troyes, a town located east of Paris and north of Burgundy, which used to be the capital of Champagne in the Middle Ages.His father, who was an obstetrician/gynecologist and his mother, who was a high school teacher of French, Latin and Greek, taught Jean and his two sisters, Marie-Claude and Laurence, the value of knowledge.
In high school, Tirole was particularly interested in mathematics and social sciences,

The Passion of Research
"A researcher's main motivation is the pleasure of discovery, as described by the French mathematician Henri Poincaré: 'Thought is only a flash in the middle of a long night.But this flash means everything.'But like everyone else, the researcher is not indifferent to peer recognition.I have received many more honors than I deserve, but I am definitely grateful for all of them… Research is largely a question of motivation and passion.The intellectual environment is absolutely vital, not only for learning and updating knowledge, but also for motivation.During my career I have been extremely fortunate to 'find myself at the right place at the right time' and also to benefit from working with exceptional colleagues and students of the highest caliber, from whom I have learned very much and who often became dear friends.I may just have been very lucky, but I never regretted my early choice of a career as a researcher."najbolja ekonomska katedra na svetu.U njemu vlada intelektualna živost, posvećenost profesuri i nastavi, i strast prema ekonomskim disciplinama.Tirol

Unemployment
When it comes to the French and other European economies in recession, Tirole says that something needs to be done urgently in order to ensure the future for the new generations.One of his proposals in the fight against unemployment is the introduction of new types of contracts, implying that the employees' rights progressively increase as their number of years spent in service accumulates.
"For thirty or forty years there has been unemployment, and we have been offering young people short term contracts because the majority of businesses are afraid to offer permanent contracts.This has led to the absurd situation in which we now find ourselves, where by giving too much protection to salaries we no longer protect them at all.It is no coincidence that the whole of Southern Europe, which shares the same labour market institutions, finds itself with high unemployment, while in Northern Europe, for example in Scandinavia, where the system is different, there is relatively little unemployment."history and psychology in particular.After his baccalaureate, in 1971 Tirole left his hometown to carry out preparatory studies at the Lycée Henri Poincaré in Nancy.In 1973 he entered the Ecole Polytechnique where he expressed the major interest in mathematics and worked with eminent professors in this field.His first encounter with economics was at the course he attended at the age of 21 at the Ecole Polytechnique.He was fascinated by the ways to combine rigorous analysis and social sciences.It was then that he started thinking about becoming an economist.In the period from 1976 to 1978 he attended Ecole des Ponts et Chaussées, which was followed by a "doctorat de troisieme cycle" (a degree intermediate between a Master degree and a PhD) in decision mathematics from Université Paris-Dauphine (1976)(1977)(1978), and finally a PhD in economics from MIT (1978MIT ( -1981)).
In his autobiography written to mark his reception of the Nobel Prize, Tirole explained why he chose economics by saying that it is a positive discipline which seeks to document and analyze individual and collective behavior.According to him, its goal is to "make the world a better place" by recommending economic policy measures.His research deals both with methodological aspects and with applications to different areas of economic life.The starting point is a concrete problem, either already identified or gleaned from observing reality or listening to decision-makers.The essence of the problem is extracted in order to focus on its key aspects.In this simplification process lies much of the difficulty of the exercise.The experience of the researcher and discussions with practitioners are very useful at this stage.Then, the model can be tested: econometrically if past data are available, and in the lab or in the field as well, because one cannot underestimate the interaction between theory and empirics.
About MIT, at which in 1981 he gained his second PhD, Tirole has only words of praise.He underlines that since the 1960s MIT became the best economics department in the world.It is characterized by intellectual vibrancy, the professors' dedication to teaching, and passion for economic disciplines.At his doctoral studies Tirole chose four fields of specialization: economic theory, public finance, econometrics and international economics.He started his thesis under the supervision of Eric Maskin, a 29 year-old MIT professor.At the end of his second year at MIT, Tirole received a letter saying that he was allowed to stay in the US for a third year.This turned out to be a fantastic opportunity, as he could devote the time to deepening his understanding of economics, take courses in fields he was completely unknowledgeable about, and start on new research projects.
At that time, Eric Maskin, the winner of the 2007 Nobel Prize in Economics, initiated MIT PhD students to game theory and information theory.Outside of regular class time, he very generously spent many hours every week in tutorials with Tirole and his colleague Drew Fudenberg.Moreover, Drew and Jean were enthusiastically attending the classes given by Paul Joskow and Dick Schmalensee and started writing papers on game theory and industrial economics.
From 1980 to 1983, Tirole often spent time at Stanford, which was, along with the Northwestern University, at the cutting edge of the revolution of game theory and information economics, whereas MIT and Harvard were the best departments for general economics.After his PhD in 1981, Tirole went back to France to work as a researcher at the Ecole Nationale des Ponts et Chaussées (ENPC).At the time, a bi učinile kompanije odgovornijim za svoje troškove.

Odabrani radovi
small economics research centre, CERAS, was being established with, notably, Serge Kolm as Director, Roger Guesnerie working there part time and Bernard Caillaud.

Not only Professorship
In 1982 Tirole began his work on the regulation of network industries and public procurement with Jean-Jacques Laffont, whom he had met during an Econometric Society conference.They talked about structural reform in sectors such as telecoms, electricity, postal services and the railways, and concluded that the new information theories would contribute to the reforms which could make companies more accountable for their costs.
The year of 1984 was significant for Tirole who started to teach as associate professor at MIT, and got married to Nathalie, who finished her master degree in law at the University of Paris the same year.Jean and Nathalie have three children: Naïs (1989), Margot (1992) and Romain (1996).The MIT years were seven years of research and teaching, focused mainly on doctoral courses, in a perfect intellectual and working environment.The economics department had a very collective and congenial atmosphere.The tone was set by professors such as Paul Samuelson, Bob Solow, and Franco Modigliani, all Nobel Prize winners, who showed humility, refused to set themselves above others and encouraged the capable younger faculty in their scientific endeavors.
Working at MIT, Tirole learned about the successful mechanisms for good governance in a department and university, which later helped him think about potential reforms in the French university system.Even after he left MIT, he has maintained good relations with the administration, and kept his ties to this university, spending six weeks per year as a visiting professor.According to his own words, Tirole always returns there with much pleasure, even though older mentors and many of his collaborators there have moved to other academic or non-academic institutions, retired or passed away.The key point is that a top department is more than its members; it is a culture.Whenever he returns, he is struck by the observation that the spirit, the creativity of research and the devotion to students have remained intact.
In 1991 Tirole returned to Toulouse to finish a book A Theory of Incentives in Regulation and Procurement with Jean-Jacques Laffont.Namely, back in the 1980s they had discussed the plans to make the University of Toulouse 1 Capitole one of the best European universities in the field of economics, in particular thanks to the creation of an Institute for Industrial Economics (IDEI) which would be financed largely by partners from the public and private sector.The IDEI was established in 1990.Laffont was appointed the Director, and with a group of friends already in this initial phase managed to bring in a handful of leading researchers.Tirole was the IDEI's scientific director since its creation.He was attracted to this position by the collective ambition and the desire to industrije -IDEI koji bi se finansirao uglavnom sredstvima partnera iz javnog i privatnog sektora.IDEI je osnovan 1990.godine.Lafont je postavljen za direktora i sa grupom prijatelja doveo je već na početku rada Instituta nekoliko vodećih istraživača.Tirol je bio naučni direktor od samog osnivanja.Ovo zvanje je prihvatio jer je bio privučen kolektivnom ambicijom i željom da se unapredi univerzitetsko okruženje Francuske.Tirol je imao potpuno poverenje u Lafonta, ne samo zbog njegovih intelektualnih sposobnosti, već i zbog zapaženih ljudskih kvaliteta i činjenice da je bio jako sposoban menadžer, što je retko u svetu istraživača.
Bojazan za budući status Ekonomskog fakulteta u Tuluzu i IDEI javila se kada je Lafont umro 2004.godine.improve the university environment in France.He had total trust in Laffont, who apart from his well-known intellectual capacity had remarkable human qualities and was also a highly competent manager, which is quite unusual in the research world.
There was some apprehension about the future status of the University of Economics in Toulouse and the IDEI after Laffont passed away in 2004.In his autobiography Tirole stated his opinion that Laffont had earned the Nobel Prize although he never got a chance to actually receive it.This opinion was evidently shared by the Committee of the Swedish Royal Academy, which is reflected in its decision and the accompanying explanation of having awarded the Nobel Prize to Jean Tirole, highlighting Laffont's contribution as well.In other words, it was suggested that the Committee would have awarded the 2014 Nobel Prize to both Laffont and Tirole, had the former lived to experience it.
The research group gathering economists in Toulouse did not break apart, which was, according to Tirole, the best tribute to Laffont.On the contrary, they actually worked entrepreneurially to further his organizational project.In 2006 the group won a national competition to create 13 centers of excellence across all fields in France.This provided some financial resources and most importantly enabled us to create a private foundation in 2009, i.e. the Fondation Jean-Jacques Laffont/ Toulouse School of Economics (TSE).
Although his academic engagements were a priority, Tirole was also actively engaged in the work of many economic councils and associations: he was a member of the French Economic Council, president of the Econometric Society and the European Economic Association.During his research work he often delved into other social sciences, including sociology, psychology, politics, etc.He was, therefore, very happy when, in 2011, his project to create an Institute of Advanced Study in Toulouse (IAST) was selected by an international jury and funded within the program "Investissements d'Avenir".
Tirole won the Nobel Prize in Economics for 2014.This Prize, as he himself underlined, is so much the outcome of a collective effort that it is impossible to acknowledge all those who contributed to it in their own ways.In his speech he thanked his wife and family for their unfaltering support; his teachers, colleagues and students.To conclude, we will quote one of his characteristic sentences spoken on the occasion of the Nobel Prize reception: "Wisdom now forces me to return as soon as possible to my previous activities, to the colleagues to whom I am indebted for the Prize, in short to the wonderful life of a researcher".

J
ean Tirole, one of the most influential economists of our time, is the third French economist (after Gerard Debreu in 1983 and Maurice Allais in 1988) to win the Nobel Prize in Economics, which was awarded to him in 2014.He is a Professor at the University of Toulouse with two doctorates defended at the University of Paris and the Massachusetts Institute of Technology -MIT on the topic of mathematics in economic decision-making.Moreover, he holds an honorary PhD degree from the Free University in Brussels and the universities in Montreal and Manheim.