Auction Theory & Auction Formats Nobel Prize in Economics YouTube Lecture Handouts

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Auction Theory & Auction Formats Nobel Prize in Economics

Nobel Prize 2020 - Economics

  • Paul Milgrom and Robert Wilson
  • Work on commercial auctions (including Goods & Services)
  • Difficult to sell in traditional ways like Radio Frequencies
  • Improvement in Auction theory & New Auction Formats
  • Analyzing bidding strategies in different auction forms
Nobel Prize 2020 - Economics
  • Mr. Wilson, a professor at Stanford in the U. S. , was spotlighted for developing a theory for auctions with a common value, β€œa value which is uncertain beforehand but, in the end, is the same for everyone,”
  • The academy noted that while β€œpeople have always sold things to the highest bidder,” societies have also had to allocate β€œever more complex objects such as landing slots and radio frequencies.”
  • It is motivated by broad societal benefit rather than maximal revenue
  • Even if it might be the most prestigious prize an economist can hope to receive, the Economics Prize has not reached the same status as the awards originally chosen by Alfred Nobel in his 1895, which included medicine, physics, chemistry, literature, and peace.
  • It was instead created in 1968 through a donation from the Swedish central bank and detractors have thus dubbed it β€œa false Nobel.”

✍ Manishika