The prize Nobel Prize in Economics 2020 it was awarded to American economists Paul R. Milgrom, 72 anni, and Robert B. Wilson, 83, both professors at Stanford University, California. The prestigious award was given to him for their studies on the theory of auctions in the market. In particular, the innovative work was used in the assignment of telecommunications frequencies. The ‘Bank of Sweden Prize for Economics in Memory of Alfred Nobel’ is awarded to them for ‘improving auction theory and inventing new auction formats’, said the Swedish Academy jury. In general, they studied the behavior of operators in auction markets.
The Nobel Prize for “auction theory”: the reasons
The motivation explains: «The weeks influence our daily lives and this year’s winners in economics have improved upon it auction theory and invented new auction formats for the benefit of sellers, buyers and taxpayers around the world. ‘ Wilson’s studies showed “why rational bidders tend to bid below their best estimate of the common value: they are concerned about the winner’s curse of overpaying and losing.” The prize awarded to the two professors is 10 million Swedish kronor (1.14 million dollars).