Bengt Holmström

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Bengt Holmström in 2013

Bengt Holmström (born 18 April 1949) is a Finnish economist. He is the recipient of Nobel Prize in Economics in 2016.


  • Today, I know better. As I will try to explain, one of the main lessons from working on incentive problems for 25 years is that within firms, high-powered financial incentives can be very dysfunctional and attempts to bring the market inside the firm are generally misguided. Typically, it is best to avoid high-powered incentives and sometimes not use pay-for-performance at all.

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