The BBVA Foundation Frontiers of Knowledge Award in Economics, Finance and Management goes to Andreu Mas-Colell and Hugo Sonnenschein.
For extending the reach and applicability of general equilibrium theory and for establishing the modern theory of aggregate demand. Their work revealed the robustness of general equilibrium analysis and its wide applicability even when economic agents are not fully rational. Their work on aggregate demand has had a major impact on the empirical measurement of consumer behaviour and its interpretation. These extensions of classical theory opened the way for economists to address a much wider range of practical problems.
Their contributions have changed the way in which economics is taught and practiced all over the world.