The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1997
Robert C. Merton, Myron S. Scholes
Interview with Myron S. Scholes at the 3rd Meeting in Economic Sciences in Lindau, Germany, 22 August, 2008. The interviewer is Adam Smith, Editor-in-Chief of Nobelprize.org.
Myron Scholes discusses the concomitant benefits of having poor eyesight as a child, the importance of reading the classics (6:36), the view that led to his choice of PhD topics (8:22), the necessary cross-pollenization of theorists and empirical economists (13:16), and the option pricing model he helped devise while working as an assistant professor at MIT (16:39). He then explains how this model was accepted among practitioners before academics (27:15), why communication and perturbation are essential to scientific research (36:12), why he retired from teaching (43:29) and why "risk is fine" (50:01).