News24.com | Milgrom, Wilson win Nobel in economics for research on auctions


 Paul Milgrom and Robert Wilson won the 2020 Nobel Prize in economics for their work in economics for research on auctions.

Paul R. Milgrom and Robert B. Wilson, both of Stanford University, won the 2020 Nobel prize in economics for their work in developing the theory of auctions.

“They have used their insights to design new auction formats for goods and services that are difficult to sell in a traditional way, such as radio frequencies,” the Royal Swedish Academy of Sciences said in a statement on Monday.

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 worried about the so-called winner’s curse, which describes the phenomenon of paying more than something’s actually worth.

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