Professors from MIT Sloan and Harvard’s department of economics have scooped two of the Onassis prizes, for their work in finance and international trade. The prizes, each worth $200,000, are awarded jointly every three years by Cass Business School, in London, and the Onassis Foundation.
The finance prize has been awarded to Stephen Ross from MIT for his work on ‘arbitrage pricing theory’ and the ‘theory of agency’, both of which he invented, and for co-discovering ‘risk neutral pricing’ and of the ‘binomial model’ for pricing derivatives. Harvard’s Elhanan Helpman won the international trade prize for his work on the ‘new trade’ and ‘new growth’ theories.
Additionally, three emeritus professors jointly shared the award for shipping. They are: Ernst Frankel, professor of mechanical and ocean engineering at MIT; Richard Goss of Cardiff University; and Arnljot Stromme Svendsen of the Norwegian School of Economics and Business Administration.
The first Onassis Prize was awarded in 2008 to Chicago University‘s Eugene Fama, for his work on efficient market hypothesis.