Economists usually study markets. Now, two Americans have won the Nobel Prize in economics for not studying markets. They will s

Economists usually study markets. Now, two Americans have won the Nobel Prize in economics for not studying markets. They will share almost $1.5 million for their analysis of economic(26)governance, which is the study of how economic activity is governed within companies,(27)communities and other groups.
    The winners are Elinor Ostrom and Oliver Williamson. The prize in economic sciences has gone to 63 men since it was first(28)awarded 40 years ago. Elinor Ostrom is the first woman. And, like other winners over the years, her training(29)is not restricted to economics. She is a professor of political science and of public and environmental affairs. Today, economic theory suggests that good resource management requires(30)ownership, either private or public. If not, the thinking goes, then self-interest will lead to overuse and(31)destruction of shared resources.
    Elinor Ostrom showed how local decision making can(32)lessen the tragedy. She studied farmers in Southern California who depended on a common water supply. Her research has deepened the understanding of how people balance their needs with those of others who depend on the same resources. She(33)documented how people who use resources often develop ways to share them.
    Oliver Williamson has studied big companies and found that they often are better than markets at doing complex jobs. Under his theory, businesses act as structures for conflict resolution. For example, companies that own their suppliers can(34)avoid long-term contracts and disputes over prices. This can make production more efficient and(35)make better use of limited resources. But businesses can also abuse their power. Prof. Williamson says the best way to deal with this is not by limiting the size of companies, but through industry regulation.