Two economists from Stanford University were awarded the Nobel Prize for economics on Monday for their research into auctions.

[Source: Washington Post] Two economists from Stanford University were awarded the Nobel Prize for economics on Monday for their research into auctions.

In Stockholm, the Royal Swedish Academy of Sciences said Paul Milgrom, a professor of humanities and sciences, and Robert Wilson, an emeritus professor of management at the Stanford Graduate School of Business, had done pioneering work in auction theory, which helped develop better real-world transactions in transactions as diverse as home-buying and government sales of radio spectrum. The ceremony was live-streamed to a global audience on the institution’s website.

“Their discoveries have benefited sellers, buyers and taxpayers around the world,” the prize committee said.
The men were honored for theoretical insights into developing the best rules for bidding and for establishing the final price. The resulting improvements in auction formats have proven especially useful in auctioning off goods and services that are difficult to price using traditional methods, such as radio frequencies, the committee said.

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