Paul R. Milgrom and Robert B. Wilson won the 2020 Nobel Economics Prize for improvements to auction theory and inventions of new auction formats.
The Nobel Prize Committee took to Twitter to announce the winner: “The 2020 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel has been awarded to Paul R. Milgrom and Robert B. Wilson ‘for improvements to auction theory and inventions of new auction formats’.”
Robert Wilson, awarded this year’s Prize in Economic Sciences, showed why rational bidders tend to place bids below their own best estimate of the common value: they are worried about the winner’s curse – that is, about paying too much and losing out.
2020 Economic Sciences Laureate Paul Milgrom formulated a more general theory of auctions that not only allows common values, but also private values that vary from bidder to bidder.❐
BREAKING NEWS:
The 2020 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel has been awarded to Paul R. Milgrom and Robert B. Wilson “for improvements to auction theory and inventions of new auction formats.”#NobelPrize pic.twitter.com/tBAblj1xf8— The Nobel Prize (@NobelPrize) October 12, 2020
