The 2020 Nobel Prize in economics has been awarded to americans Paul R. Milgrom and Robert B. Wilson 'for improvements to auction theory and inventions of new auction formats.'
The two Economic Science Laureates, Paul Milgrom and Robert Wilson, have not just clarified how auctions work and why bidders behave in a certain way, but used their theoretical discoveries to invent entirely new auction formats for the sale of goods and services.
The discoveries of Paul R. Milgrom and Robert B. Wilson "have benefitted sellers, buyers and taxpayers around the world," the Nobel Committee said, noting that the auction formats developed by the winners have been used to sell radio frequencies, fishing quotas and airport landing slots.
Both economists are based at Stanford University in California, and Milgrom said he received news of their win "in a strange way."
The award comes as much of the world experiences the worst recession since World War II because of the impact of the coronavirus pandemic.
The award caps a week of Nobel Prizes and is technically known as the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel.
Last year's award went to two researchers from the Massachusetts Institute of Technology and a third from Harvard University, for their groundbreaking research into efforts to reduce global poverty.
Few economists could have predicted last fall that the globe would come to a virtual standstill within months, as governments closed their borders, imposed lockdowns and ordered other measures to stop the spread of COVID-19, triggering a sharp dip in business activity worldwide.
(Inputs from AP)