Americans Milgrom, Wilson win Nobel Prize for economics

Americans Milgrom, Wilson win Nobel Prize for economics

"Their discoveries are of great benefit to the society", Peter Fredriksson, chair of the Prize Committee said.

Their theoretical discoveries have improved auctions in practice.

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 anxious about the winner's curse - that is, about paying too much and losing out.

He said that his interest in auction theory dated back to the 1950s and that he thought the time for winning a Nobel Prize had already passed.

Wilson, who was born in 1937 in Geneva, demonstrated why rational bidders tend to place bids below their own best estimate of the common value, because they're anxious about the so-called winner's curse, which describes the phenomenon of paying more than something's actually worth. The format has also been used to auction off electricity and natural gas.

"Well, if you take a look, for example, we had proposed a design for the C-band auction, the auction of radio spectrum for use in 5G".

Goran Hansson, secretary-general of the Royal Swedish Academy of Sciences who announced the award, said that reflected American investment in research after WWII. The 72-year-old Paul Milgrom was born in Detroit and earned his PhD in business at Stanford in 1978.

Waymo offers public rides in driverless cars in Phoenix
The company has a deal with AutoNation to clean the minivans as part of the regular maintenance of the vehicles. General Motors' Cruise subsidiary is testing its shuttle-style vehicles in and around San Francisco .

While the award is technically called Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel, since being established in 1969 it has been widely considered as part of the Nobel Prizes that are given out. He is a PhD 1979 from Stanford University, Stanford, USA.

Speaking to reporters in Stockholm by phone after learning of his win, Wilson struggled to think of a recent auction he himself had participated in. He then clarified that his wife told him that they have bought ski boots on the online auction website eBay. "I guess that's an auction".

His contributions to the theory of auctions is summarized in his book "Putting Auction Theory to Work".

Previous year the prize went to French-American Esther Duflo, Indian-born Abhijit Banerjee of the USA, and American Michael Kremer for their experimental work on alleviating poverty.

The prize money of 10 million Swedish kronor will be shared equally between the laureates.

The Nobel Prize for Physics went to Roger Penrose of Britain, Reinhard Genzel of Germany, and Andrea Ghez of the United States for their breakthroughs in understanding the mysteries of cosmic black holes.

On Friday, the Nobel Peace Prize for 2020 has been awarded to the Nobel Peace Prize 2020 awarded to World Food Programme (WFP).

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