Aumann and Schelling Win The Nobel

Robert Aumann and Thomas Schelling have won this year's Nobel Prize in Economics.

Through their work, Aumann, 75, and Schelling, 84, have helped to "explain economic conflicts such as price wars and trade wars, as well as why some communities are more successful than others in managing common-pool resources," the academy said in its citation.

"The repeated-games approach clarifies the raison d'etre of many institutions, ranging from merchant guilds and organized crime to wage negotiations and international trade agreements."