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

Jean Tirole - Essay ExampleMost of the economists frequently regard ferociously competitive markets as the earth interest. When the producers in the said markets fight to earn a profit or gains, they are guided, as if by an invisible hand, in delivering high quality at the lowest apostrophize possible. But 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 useful scientific guidance in such(prenominal) 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 personal effects of public regulations however the study did not cater for the rapidly developing, revolutionary, industrial organization (IO) field. Jean Tirole is the scoop up among the contributors to the analytical revolution he has enhanced the understanding of the IO in general, and particularly the optimal policy interventions.The metaphysical advancements, by Tirole, are in line with great public-policy interest, for example, in the 1980s and 1990s most of the countries chased pro-competitive liberalization 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 analysis required synchronization of the oligopoly theory push theory, the principal-agent, with combination of industrial economics combined with public economics. Jean Tiroles expertise covered all(a) the above 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 study and strategic behavior economics. He consistently extracted his results from the fundamental