Nobel for Contract Theory has been won by Two Economics Professors from Finland but bassed in the US

Both Mr Oliver Hart and Mr Bengt Holmstrom are both Finland origin but born in the UK have emerged as the winners of the Nobel Economics Prize for work on contract theory.

Judges said their work laid When  examining, the judges said their work has "an intellectual foundation" for policies in areas such as bankruptcy legislation and political constitutions.

The two professors are going to be rewarded by the committee with 8 million Swedish kroner (£744,652).

Mr Oliver Hart is 68-year-old and a professor in Harvard University US in economics department while his fellow winner, Mr Holmstromin is also a professor in Massachusetts Institute of Technology US.

The Royal Swedish Academy of Sciences said that Mr Hart and Mr Holmstrom's work was "valuable to the understanding of real-life contracts and institutions as well as potential pitfalls in contract design."

The academy added by saying: "contract theory can be used to assess performance-based pay for top executives".