Jean Tirole Essay Example | Topics and Well Written Essays - 1000 words

Jean Tirole - Essay ExampleMost of the economists frequently regard fiercely competitive markets as the humanity interest. When the producers in the said markets involution to earn a profit or gains, they are guided, as if by an invisible hand, in delivering high quality at the lowest cost possible. and most the industries are not competitive, and due to the lack of competition, there is the need for intervention the publics interest. Competition policies and theories of regulation are aimed at providing profitable scientific guidance in such interventions.Stigler George was awarded a Prize in Economic Sciences in 1982 for his seminal studies in functioning of markets, industrial structures, and the causes and effects of public regulations however the study did not cater for the rapidly developing, revolutionary, industrial organization (IO) field. Jean Tirole is the best among the contributors to the analytical revolution he has enhanced the understanding of the IO in general, a nd particularly the optimal policy interventions.The theoretical advancements, by Tirole, are in line with great public-policy interest, for example, in the 1980s and 1990s most of the countries pursued pro-competitive rest and regulatory reforms. The European Union (EU) came up with a single market new issues sprung and could not be fruitfully analyzed with the existing theories, Stigler George, and others the EU abbreviation required synchronization of the oligopoly theory contract theory, the principal-agent, with combination of industrial economics combined with public economics. Jean Tiroles expertise covered all the higher up fields, hence was ideally positioned at making a lasting contribution (Tirole & Lerner, 2013).Tirole created a synchronized framework used in regulation and IO theory, based on a thorough analysis of information and strategic behavior economics. He consistently extracted his results from the fundamental