In this episode of THE MENTORS RADIO,Host Dan Hesse talks with Bengt Holmström, the Emeritus Paul A. Samuelson Professor of Economics at MIT, to celebrate the 10-year anniversary of receiving the 2016 Nobel Prize in Economics for his contributions to contract theory. His research has advanced the understanding of incentives, organizations, corporate governance, and financial liquidity. Bengt is a member of the U.S. National Academy of Sciences, a Fellow of the American Academy of Arts and Sciences and the Econometric Society, and a foreign member of the Royal Swedish Academy of Sciences and the Finnish Academy of Science and Letters. He received his Ph.D. from Stanford and before MIT, he held faculty appointments at Yale and Northwestern. Dr. Holmstrom explains why factors that are hard to measure usually drive better behavior in incentive plans than those that are easy to measure. He mentors his students that asking the right questions is far more important than answering questions. A self-described “AI optimist,” he considers the AI companion he has created, Charlie, clever and life-enriching. LISTEN TO this radio broadcast live on iHeart Radio, or go to “THE MENTORS RADIO” podcast any time, anywhere, on any podcast platform – subscribe here and don’t miss an episode!
Inside and Outside Liquidity, by Bengt Holmström and Jean Tirole — Two leading economists develop a theory explaining the demand for and supply of liquid assets. Why do financial institutions, industrial companies, and households hold low-yielding money balances, Treasury bills, and other liquid assets? When and to what extent can…
