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The Nobel Prize in Economics goes to prosperity researchers

Darren Acemoglu, Simon Johnson and James A. Robinson received this year’s Nobel Prize in Economic Sciences for their contributions to proving the importance of public institutions to a country’s prosperity.

KEY FACTS

  • The prestigious prize, officially known as the Sveriges Riksbank Prize for Economic Sciences in Memory of Alfred Nobel, is the last prize awarded this year and is worth SEK 11 million ($1.1 million).
  • This year’s laureates showed that one of the explanations for differences in countries’ prosperity is the social institutions introduced during European colonization. Inclusive institutions were often introduced in countries that were poor at the time of colonization, which over time led to general prosperity for the population. This is an important reason why former colonies that were once rich are now poor and vice versa.
  • Introducing inclusive institutions would create long-term benefits for everyone, but extractive institutions provide short-term gains for those in power. As long as the political system ensures they retain their control, no one will trust their promises of future economic reforms. According to the laureates, this is the reason why there is no improvement.
  • “Reducing the huge income gaps between countries is one of the greatest challenges of our time. The laureates have demonstrated the importance of public institutions in achieving this,” said Jakob Svensson, Chairman of the Economic Sciences Prize Committee.
  • “Societies with poor rule of law and institutions that exploit the population do not generate growth or change for the better,” the prize’s organizers add on their website.

TANGENT

Darren Acemoglu and Simon Johnson work at MIT, while James Robinson is at the University of Chicago.

Acemoglu and Johnson recently collaborated on a book researching technology through the ages that demonstrates how some technological advances are better at creating jobs and spreading wealth than others.

KEY STORY

The Economics Prize is not one of the original science, literature and peace prizes created by the will of dynamite inventor and businessman Alfred Nobel and first awarded in 1901, but is a later additional prize established and funded by the Central Bank of Sweden in 1968.

Past recipients of the award include a number of influential thinkers such as Milton Friedman, and John Nash – played by actor Russell Crowe in the 2001 film A Beautiful Mind, and former US Federal Reserve Chairman Ben Bernanke.

Last year, Harvard economic historian Claudia Goldin won a prize for her work highlighting the causes of pay and labor market inequality between men and women.

Jeff Bezos Plans $4 Billion Amazon Share Sale Following Record Rally

Jeff Bezos has disclosed plans to sell approximately $4.1 billion worth of Amazon shares after the company’s stock reached a record high following stronger-than-expected quarterly results.

A filing with the U.S. Securities and Exchange Commission (SEC) shows the Amazon founder intends to sell around 15 million shares under a Rule 10b5-1 trading plan adopted in November 2025. According to the filing, the transactions were executed through Morgan Stanley on Monday.

Sale Follows Strong Earnings

The planned sale comes after Amazon shares climbed to an all-time high, lifting the company’s market capitalisation above $3 trillion.

Investor sentiment strengthened after Amazon reported better-than-expected second-quarter results, supported by continued growth in its cloud computing business. The performance reinforced confidence that the company’s investments in artificial intelligence are driving increased demand across AWS.

Despite the positive earnings, Amazon shares fell more than 2% in early trading on Tuesday following the disclosure.

Part Of An Ongoing Trading Plan

Bezos has regularly sold Amazon shares through pre-arranged trading plans while remaining one of the company’s largest shareholders.

The SEC filing also disclosed that he donated more than 220,000 shares to charitable organisations in May. Those shares may have been sold during the following months.

Amazon stock has gained around 23% since the beginning of the year, outperforming the S&P 500, which has risen approximately 11% over the same period.

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