The prestigious Nobel Prize for Economics 2020 is awarded to Paul R. Milgrom and Robert B. Wilson. Both the professors are from Stanford and also live on the same street in the US. They both were awarded for their proposed research in improvements to auction theory and inventions of new auction formats.
Mr. Robert B.Wilson, who is a professor at Stanford in the U.S., was spotlighted for developing a theory for auctions with a common value, “a value which is uncertain beforehand but, eventually, in the end, it is same for everyone,” according to the academy.
Mr. Wilson’s work demonstrated why objective bidders will in the general offer under their own gauge of the value because of stresses over the “winner’s curse,” or winning the closeout however paying excessively. Mr. Milgrom, likewise at Stanford, at that point thought of a more broad hypothesis of sales, by dissecting offering methodologies in various closeout structures.
The Royal Swedish Academy of Sciences noted that the discoveries by the duo “have greatly benefitted sellers, buyers, and taxpayers around the world,” it said in a statement. The winners of the prize will share a hefty prize sum of 10 million Swedish kronor which is about $1.1 million or one can say 9,50,000 euros.
Learn more about the 2020 Prize in Economic Sciences:
— The Nobel Prize (@NobelPrize) October 12, 2020
Speaking to the reporters in Stockholm via a telephone link, Mr. Wilson said the announcement had been “very happy and delighted news,” conceding that despite all his research focus he himself had “never ever has participated in an auction before”.
Last year in 2019 this honor went to French-American Esther Duflo, Indian-born Abhijit Banerjee with U.S. citizenship, and American Michael Kremer for their experimental work on alleviating poverty. The last and influential closing award for Nobel season 2020 was the Nobel Peace Prize. It was awarded to U.N.’s World Food Programme.