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
Paul R. Milgrom and Robert B. Wilson both work at Stanford University, USA. They have developed new methods by studying the auction process. They have outlined new auction formats for such goods and services (such as radio frequency). It is not possible to sell them in the traditional way. His discovery has greatly facilitated sellers, buyers and taxpayers from all over the world.
What is the auction principle
Using auction theory or auction theory, researchers try to understand the various rules and results regarding bidding and final prices.
Wilson set the principles for the auction of a common value item. According to him a value that is uncertain at first but remains the same for all in the end.
Wilson has attempted to show through his theory why rational bidders place bids below the best estimate of their normal value. They are worried about the loss of being the winner.
Milgrom created a general principle of auction that allows not only normal values. This private value varies for the bidder.
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