Milgrom and Wilson are both from Stanford University.
Pic: Twitter/NobelPrize
The 2020 Nobel Prize in Economics was on Monday awarded to American economists, Paul R. Milgrom and Robert B. Wilson "for improvements to auction theory and inventions of new auction formats".
According to the Royal Swedish Academy of Science, Wilson has awarded this year's Prize in Economic Sciences as he "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".
ADVERTISEMENT
BREAKING NEWS:
— The Nobel Prize (@NobelPrize) October 12, 2020
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
Meanwhile, Milgrom "formulated a more general theory of auctions that not only allows common values, but also private values that vary from bidder to bidder".
Milgrom and Wilson are both from Stanford University.
"This year's Laureates in Economic Sciences started out with fundamental theory and later used their results in practical applications, which have spread globally. Their discoveries are of great benefit to society," says Peter Fredriksson, chair of the Prize Committee.
Keep scrolling to read more news
Catch up on all the latest Crime, National, International and Hatke news here. Also download the new mid-day Android and iOS apps to get latest updates.
Mid-Day is now on Telegram. Click here to join our channel (@middayinfomedialtd) and stay updated with the latest news
This story has been sourced from a third party syndicated feed, agencies. Mid-day accepts no responsibility or liability for its dependability, trustworthiness, reliability and data of the text. Mid-day management/mid-day.com reserves the sole right to alter, delete or remove (without notice) the content in its absolute discretion for any reason whatsoever
Subscribe today by clicking the link and stay updated with the latest news!" Click here!
