Deaton, an economist and Nobel Prize winner, had a significant impact on studies of economics. He acknowledges the contribution of various inputs by firms to produce stipulated output economically. Deaton recognizes the importance of objectivity in reporting economic aspects that affect the welfare of citizens. According to the economist, income should not be the absolute measure of standards of living in a given country. It is essential to understand the behaviour of consumers in making choices on what to buy.
Deaton notes the presence of income inequalities, which affects the purchasing power of consumers. Households with high incomes witness diminishing utility on a given bundle of goods, which are necessary for sustaining welfare at desired levels. Moreover, Deaton emphasizes the importance of objectivity in the formulation of policies, which enable citizens purchase a given bundle of goods to enhance their well-being. The use of National Income in studying economic variables is inadequate. It is prone to insufficient information, double counting, and fails to include all goods and services produced in a given country (The Economist, 2015).
Research undertaken by Deaton is beneficial to Industrial Organization studies. It assists in the formulation of policies that control perfect and imperfect competition markets to safeguard the access of essential commodities among citizens of a given economy. Furthermore, it enables understanding of different market structures based on objective research while investigating economic outcomes. The sample size should be sufficient for predicting economic variables prevailing in a given economy as it is stated on http://essaywriting.education/cheap-essay-writing (2011) : that a proper theoretical account is essential in predicting economic variables. The research further complements Industrial organization by highlighting that increasing level of inequality and climate change are threaten progresses necessitating firms to take corrective economic actions (Appelbaum, 2015).
Jean Tirole, a 2014 Nobel Prize winner, made a significant contribution in the field of Industrial Organization. He emphasizes the need for scientific research while addressing economic issues prior to making interventions through policies. It involves incorporation of assumptions on preference and technologies (The Royal Swidish Academy of Science, 2014). Furthermore, Tirole acknowledges the importance of specializing in research for specific economic variables while undertaking research and emphasizes the need for policy analysis. Moreover, efforts of Tirole are interesting considering its relevance in Industrial Organization.