Novel Laureate Oliver Hart on Regulation

Alumni and Public Relations Office    2018-03-15

Oliver Hart and SJTU Chairperson Jiang Sixian

On Mar 14, Professor of Economics at Harvard University and recipient of 2016 Nobel Economics Prize Professor Oliver Hart came to Shanghai Jiao Tong University and gave a talk on ‘The Case For (and Against) Regulation to a crowd of over 300 people at ACEM.

The talk addressed when regulation of economic relationships is desirable, and focus on the case where the parties involved have contractual relationships.

‘Under standard assumptions of symmetric information and unbounded rationality regulation cannot improve matters. However, matters change if the parties are asymmetrically informed or if they are boundedly rational. Regulation can also be justified if the government has commitment problems. ’ said Hart.

During the talk, he stressed that he was vigilant about the debate of the US Congress rolling back bank rules.

The event was hosted by Professor Qin Xiangdong, Professor of ACEM, and attended by Shanghai Jiao Tong University Chairperson Jiang Sixian, Dean of ACEM Zhou Lin.