French professor famed for work on monopolies awarded Nobel Prize in economics

French economist Jean Tirole has been awarded the 2014 Nobel Memorial Prize in economics for his outstanding analysis on monopolies created by powerful companies and ways to regulate them.

A former MIT student, Tirole now works as the head of economics at Toulouse University, France.

Tirole has spent the last 30 years studying how a small number of large firms can dominate markets and the damage that can do-and how governments should respond, CNN reports.

The economist argues that the best regulation is adapted to the conditions of each industry, such as telecoms and banking, rather than trying a one-size-fits-all approach, the report says.

The Nobel committee said that cooperation on price setting within a market is usually harmful, but cooperation regarding patent pools can benefit everyone.

It added that while the merger of a firm and its supplier may encourage innovation, it might also distort competition

Tirole was also named as one of the world's most influential academics this year in a survey by Thomson Reuters.