Photos of the 2013 Nobel Prize laureates in Economic Sciences Fama, Hansen and Shiller are displayed during a news conference in Stockholm

Eugene F Fama, Lars Peter Hansen and Robert J. Shiller was awarded the prize in economics in Memory of Alfred Nobel. The three winners are rewarded for their efforts in financial economics. They are considerably improved our understanding of how prices, such as stock prices, are determined in the market.

According to the committee, the economists’ research “laid the foundation for the current understanding of asset prices.”

Their research showed that while it is difficult to predict asset prices in the short term, prices can be predicted in broad terms over longer periods, such as three to five years, according to the Nobel academy.