The duo received the Nobel Memorial Prize in Economic Sciences…..
American duo were awarded the 2020 Nobel Memorial Prize in Economic Sciences.
According to the statement of The Royal Swedish Academy of Sciences, Paul Milgrom and Robert B Wilson the US economists won Nobel Economics Prize for their work on commercial auctions, improvements to auction theory and inventions of new auction formats that have benefitted the sellers, buyers and taxpayers worldwide. Also, they will be sharing prize money worth 10million.
Robert B Wilson, affiliated with Stanford University in US developed auction theory that focuses on a common value in order to overcome difficulties to sell in traditional ways such as radio frequencies or to extract minerals in a specific area.
This common value “is uncertain before hand but, in the end, is the same for everyone”, the academy said.
During the 1960s and 1970s Wilson’s work gave an insight of why bidders tended to bid on the basis of their own thought about the worth of a good.
By 1980, Milgrom who is also a professor at Stanford University in US, his seminal papers were published as he discovered more general theory of auctions after analysing bidding strategies in different auction forms.
According to the academy, the duo who both are associated with Stanford University collaborated and invented new formats for auctioning off many interrelated objects simultaneously, on behalf of a seller.
By: Aishwarya Shivakumar