The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2020

Two American economists won the Nobel Prize on Monday for improving the theory of how auctions work and inventing new and better auction formats that are now woven into many parts of the economy.

According to Nobel release: The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2020 was awarded jointly to Paul R. Milgrom and Robert B. Wilson “for improvements to auction theory and inventions of new auction formats.”

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.”