Diamond, Mortensen and Pissarides formulated a theoretical framework for search markets in which buyers and sellers do not always make contact with one another immediately

While Elinor Ostrom dealt with overcoming collective action dilemmas in managing natural resources, Oliver Eaton Williamson is well-known for building the foundation of transaction economics through laying the distinction between firm and market transactions

Taking cue from the growing intra-industry trade, Paul Robin Krugman incorporated economies of scale and consumers’ preference for diverse goods to formulate his new trade theory — further interlinking it with location of economic activity

While Leonid ‘Leo’ Hurwicz gave the theory of incentive compatibility in mechanism design, Eric Stark Maskin and Roger Bruce Myerson extended his work by incorporating implementation theory and monetary aspects of mechanism design respectively

Apart from providing microeconomic foundation to macroeconomic theories, Edmund Strother Phelps, going beyond the Keynesian hypothesis, clarified the distinction between long- and short-run trade-offs between inflation and unemployment

While Robert John Aumann applied his mathematical skills to developing his works on repeated games, Thomas Crombie Schelling laid out simple and lucid models of conflict resolution — both expanding the frontiers of Game theory in a significant way

Contrary to the Keynesian view that changes in aggregate demand drove business cycles, the works of Finn Erling Kydland and Edward Christian Prescott established that technological changes and supply shocks could also be major drivers of business cycles

Robert Fry Engle III and Clive William John Granger introduced innovative methods — with time varying volatility and cointegration respectively — of analysing time series data in the early 1980s

The works of both Daniel Kahneman and Vernon Lomax Smith challenged the assumptions of neoclassical framework; while the former applied psychological research to economics, the latter initiated the new trend of experimentation

George Akerlof, Michael Spence and Joseph Stiglitz applied the concept of information asymmetry to wide-ranging areas, enabling a more real-world approach than in assumed symmetric set-up of neoclassical framework

While James Joseph Heckman devised a method for analysing selective samples and did research on effects of early childhood care on health, Daniel Little McFadden provided econometric tools to deal with discrete choices

Chiefly known for dynamic analysis of fiscal and monetary policy under different exchange rate regimes, Robert Alexander Mundell made fundamental contributions to international macroeconomics, guiding trade and economic policies to date