Nobel prize winner Kantorovich and Koopmans

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<ol><li> 1. { Leonid Vitaliyevich Kantorovich &amp; Tjalling C Koopmans By: Shivani Darji </li><li> 2. Background on Kantorovich Born in Petersburg, Russia on January 19th, 1952 with only his mother after his father died His first interests in science began around 1920 On entering the Mathematical Department, he was mainly interested in sciences He was Educated at Leningrad State University and received his doctorate in mathematics at the age of 18 He became a professor at Leningrad in 1934 Kantorovich was elected to the prestigious Academy of Sciences of the Soviet Union (1964) and was awarded the Lenin Prize in 1965 His first major contribution to economics came in 1938 as a consultant to the Soviet governments Laboratory of the Plywood Trust. He realized that the problem of maximizing the distribution of raw materials could be solved in mathematical terms. He called this Linear Programming In his best-known book, The Best Use of Economic Resources (1959), Kantorovich demonstrated that even socialist economies much use process, based on resource scarcity, to allocate resources efficiently </li><li> 3. Background on Koopmans Born in Graveland, Netherland on August 28th 1910 Koopmans was educated in mathematics and physics at the universities of Utrecht and Leinden He got his PhD in economics at Leiden in 1936 He worked for the British Merchant Shipping Mission during WWII in the United States According to Britannica, In that position he was concerned with the selection of shipping routes that would minimize the total cost of transporting required quantities of goods, available at various locations in America, to specified destinations in England He also made a general mathematical model of the problem to come up with the equations needed to solve the problem Koopmans joined the Cowles Commission for Research in Economics at the University of Chicago By 1955, Koopmans was a professor at Yale University He and Kantorovich independently developed a rational method, called activity analysis for allocating resources. </li><li> 4. The Theory and its importance Kantorovich and Koopmans received the noble prize for their contributions to the theory of optimum allocation of resources By definition, resource allocation is a plan for using available resources, for example human resources, especially in the near term, to achieve goals for the future. This theory is important and considered a great discovery because not many people thought of it. They just wanted what they wanted. Though Kantorovich and Koopmans realized that there are only so many resources and too many people to distribute to all of them, hence coming up with the idea that they can be allocated to certain groups of people. Basic allocation decision and contingency mechanisms: the resources are allocated to some items, not to others </li><li> 5. Tjalling C. Koopmans </li><li> 6. Leonid Kantorovich </li></ol>