Americans Paul R Milgrom and Robert B Wilson have been declared as the winners of the Nobel Prize in economics. They are being awarded for producing improvements to auction theory and inventions of new auction formats. The Nobel Prize ceremony took place on Monday in Stockholm by Goran Hansson. Goran Hansson is the secretary-general of the Royal Swedish Academy of Sciences. Also Read: Opinion: A Dominant Donald Trump Has To Shift Gears To Win The White House Again The list of final awards were listed when the world is going through […]
Americans Paul R Milgrom and Robert B Wilson have been declared as the winners of the Nobel Prize in economics. They are being awarded for producing improvements to auction theory and inventions of new auction formats.
The Nobel Prize ceremony took place on Monday in Stockholm by Goran Hansson. Goran Hansson is the secretary-general of the Royal Swedish Academy of Sciences.
Also Read: Opinion: A Dominant Donald Trump Has To Shift Gears To Win The White House Again
The list of final awards were listed when the world is going through tough times due to the outbreak of pandemic.
The award was commonly known as Sveriges Riksbank Prize in Economic Sciences. This award was instituted in the memory of Alfred Nobel. This award was established in 1969. It is now treated as one of the Noble prizes.
Previous year, two researchers from the Massachusetts Institute of Technology and one from Harvard University were being honoured with the same title. The reason for honouring these awards was the ground-breaking research with a purpose to reduce global poverty.
This sharp decline in business activity across the world was predicted by a few economists. They predicted globe would come to a virtual standstill within months due to the government’s decision of closing their borders, imposing lockdowns and ordering other measures to halt the spread of COVID-19.
On the other hand, Paul Milgrom presented a more general theory of auctions. It allows the common values, but also private values that varies from bidder to bidder.
He successfully analysed the bidding strategies in innumerable popular auction formats. Thus, it helped in showcasing a format to give the seller a higher expected revenue. This happened only when bidders learnt about each other’s estimated values during bidding.
Robert Wilson was being honoured by the Prize for developing the auctions of objects with a common value.
This value is uncertain beforehand but in the end everyone.
Mr. Wilson understood the rational bidders’s comprehension for putting up their best estimate of the common value. This is the winner’s curse– that is, about paying too much and losing out.
