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Strategy: Strategy lessons from Jean Tirole

Why did Jean Tirole win this year’s economics Nobel?

Here’s one key reason: “Jean has a bit of magical quality of being able to take very complex situations where there are a lot of different moving parts and a lot of institutional details and structuring the essence of it in a relatively simple model,” says Harvard Business School professor Josh Lerner, who has co-authored several recent papers with Tirole. “Obviously models have to simplify reality, but one of the real skills is essentially being able — it’s an art, not a science — to say, ‘What are the key levers here? What are the aspects that distill the situation down to its very essence?’”

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