2020 Nobel in Economics Awarded to Paul Milgrom and Robert Wilson
12 oct 2020
Paul R. Milgrom and Robert B. Wilson were awarded the Nobel in economic science on Monday for improvements to auction theory and inventions of new auction formats.
Mr. Wilson developed a theory for auctions of items with a common value, explaining why bidders will offer less than they think the object or service is worth because they are afraid of overpaying — the winner’s curse. Mr. Milgrom came up with a theory in which private values vary from bidder to bidder in an auction.
“This year’s Laureates in Economic Sciences started out with fundamental theory and later used their results in practical applications, which have spread globally. Their discoveries are of great benefit to society", says Peter Fredriksson, chair of the Prize Committee.
Mr. Milgrom was born in 1948 in Detroit, studied at Stanford University, where he received a doctorate in 1979 and where he is now a professor.
Mr. Wilson was born in 1937 in Geneva, Neb., educated at Harvard University, and is now a professor emeritus at Stanford