Jewish American economist Paul Milgrom will share the Nobel Prize in economics with American economist Robert Wilson for their work in auction theory, the Royal Swedish Academy of Sciences announced Monday.
The laureates’ theoretical discoveries in their studies of how auctions work have improved auctions in practice, according to the prize committee. Milgrom and Wilson 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. Their discoveries have benefitted sellers, buyers, and taxpayers around the world.”
Milgrom, 72, raised in a Jewish family in Detroit, earned a PhD in economics from Stanford University in 1979 and is now the the Shirley and Leonard Ely Jr. Professor of Humanities and Sciences there. Wilson was his thesis advisor.
Milgrom is known for analysing the bidding strategies in a number of well-known auction formats, demonstrating that a format can give the seller higher expected revenue when bidders learn more about each other’s estimated values during bidding.
In a video posted on line by Stanford University, his fellow winner Robert Wilson breaks the news to him by knocking on his front door at 2 o’clock in the morning, after it became apparent the Nobel Prize committee was not able to reach him.
Watch the clip here:
The #NobelPrize committee couldn't reach Paul Milgrom to share the news that he won, so his fellow winner and neighbor Robert Wilson knocked on his door in the middle of the night. pic.twitter.com/MvhxZcgutZ
— Stanford University (@Stanford) October 12, 2020