Eric Maskin
Eric Stark Maskin (born December 12, 1950) is an American economist and mathematician whose work has fundamentally reshaped our understanding of game theory and mechanism design. His contributions, particularly in developing the theoretical underpinnings for how to design systems that achieve desired social outcomes, earned him the 2007 Nobel Memorial Prize in Economic Sciences, shared with Leonid Hurwicz and Roger Myerson. He is currently the Adams University Professor and Professor of Economics and Mathematics at Harvard University, a position he returned to in 2011.
Before his return to Harvard, Maskin held the esteemed position of Albert O. Hirschman Professor of Social Science at the Institute for Advanced Study until 2011. During this period, he also maintained a role as a visiting lecturer, with the rank of professor, at Princeton University. His academic journey is marked by a deep engagement with theoretical economics, and his influence is evident in the work of his doctoral students, which include prominent figures like Abhijit Banerjee, Drew Fudenberg, and Jean Tirole.
Early life and education
Born in the bustling metropolis of New York City on December 12, 1950, Eric Maskin’s early life unfolded in the suburban landscape of Alpine, New Jersey. He received his secondary education at Tenafly High School in Tenafly, New Jersey, graduating in 1968. His intellectual journey then led him to Harvard College, where he pursued mathematics, earning his A.B. in the subject in 1972. The pursuit of deeper understanding propelled him further at Harvard University, where he obtained his A.M. in applied mathematics in 1974, followed by his Ph.D. in the same field in 1976. His doctoral thesis was on the complex subject of "Social choice on restricted domains," a topic that foreshadowed his later work on designing systems for collective decision-making. During his doctoral studies, he also spent time as a visiting student at Darwin College, immersing himself in the academic environment of Cambridge University. His doctoral advisor, the legendary Kenneth Arrow, undoubtedly left an indelible mark on his intellectual development.
Career and topics
Upon completing his doctorate in 1976, Maskin embarked on his academic career as a research fellow at Jesus College, Cambridge. The following year, he joined the esteemed faculty of Massachusetts Institute of Technology. A significant return to his alma mater occurred in 1985 when he accepted the Louis Berkman Professorship of Economics at Harvard University, a position he held until 2000. His academic affiliations extended to St John's College, Cambridge, where he was a visiting fellow in 1987. During the 1990s, Maskin lent his expertise to the Bank of Italy, advising on the intricate operations of its bond auctions. In 2000, his academic path led him to the Institute for Advanced Study in Princeton, New Jersey. Beyond his primary appointment, Maskin also directed the Jerusalem Summer School in Economic Theory at The Institute for Advanced Studies at The Hebrew University of Jerusalem, fostering the next generation of economic thinkers. In 2010, his contributions were recognized with an honorary doctoral degree in economics from The University of Cambodia. The gravitational pull of academia, however, brought him back to Harvard University in 2011, where he assumed the role of Adams University Professor and professor of economics and mathematics.
Maskin's intellectual landscape is vast, encompassing diverse areas of economic theory, including game theory, the nuanced study of incentives, and contract theory. He is particularly celebrated for his groundbreaking work in mechanism design and implementation theory, as well as his contributions to the understanding of dynamic games. In collaboration with Jean Tirole, he was instrumental in advancing the concept of Markov perfect equilibrium. His ongoing research interests are as varied as they are insightful, delving into the comparison of different electoral systems, the root causes of economic inequality, and the dynamics of coalition formation.
His academic standing is further solidified by his fellowships in prestigious institutions such as the American Academy of Arts and Sciences, the Econometric Society, and the European Economic Association. He also holds the distinction of being a Corresponding Fellow of the British Academy. In 2003, he served as president of the Econometric Society, a testament to his leadership and influence within the field.
In 2014, Maskin extended his academic reach by accepting a visiting professorship at Covenant University in Nigeria. His academic accolades continued to accumulate, and in September 2017, he was granted the title of HEC Paris Honoris Causa Professor, recognizing his lifelong dedication and contributions to economics. He has also played a role in shaping academic discourse by serving on the Social Sciences jury for the Infosys Prize in 2018. Furthermore, his commitment to fostering economic talent is evident in his role as chairman of the advisory board of the International Economics Olympiad.
Political views
Maskin has engaged with the practical implications of economic theory in the political arena. Alongside Ned Foley, he has advocated for the adoption of Baldwin's voting method, which they termed "Total Vote Runoff." This proposal aims to address perceived shortcomings in the instant-runoff method, often referred to as Ranked Choice Voting, particularly in U.S. jurisdictions. The "Total Vote Runoff" system is designed to ensure that election winners command majority support and to elect candidates who are more broadly acceptable to the electorate.
In a notable public statement in June 2024, Maskin was among 16 Nobel Prize in Economics laureates who signed an open letter expressing concern about the potential economic consequences of Donald Trump's proposed policies. The letter argued that Trump's fiscal and trade strategies, coupled with any efforts to undermine the Federal Reserve's independence, could lead to a resurgence of inflation in the United States.
Software patents
Maskin has expressed a critical perspective on the role of software patents in the modern economy, suggesting that they may, in fact, stifle innovation rather than foster it. He points to the historical trajectory of the software, semiconductor, and computer industries, which have demonstrated significant innovative capacity despite periods of comparatively weaker patent protection. Maskin's argument is rooted in the observation that innovation in these sectors is often sequential and collaborative, meaning that increased competition, rather than restrictive patents, can drive firms to greater future profitability. He posits that in such dynamic environments, "patent protection may reduce overall innovation and social welfare." This viewpoint is further elaborated in his work with co-author James Bessen, who noted that when patent protection was extended to software in the 1980s, the expected increases in R&D intensity and productivity among patenting firms did not materialize, contrary to standard economic predictions. Additional evidence supporting their model includes the prevalence of cross-licensing agreements and a discernible positive correlation between innovation rates and the entry of new firms into the market.