American economists Leonid Hurwicz, Eric Maskin and Roger Myerson have won the 2007 Nobel for economics. The prize committee said they had won the award for laying the foundations of mechanism design theory.
The Royal Swedish Academy of Sciences said mechanism design theory allowed economists to distinguish situations where markets work well from those where they do not.
The economics prize is not part of the original crop of Nobel Prizes set out in Alfred Nobel's 1895 will. It was established in 1968 and is officially called The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel.