Nobel Prize in Economics awarded to Milgrom and Wilson for auction theory work – business live

Robert Wilson and Paul Milgrom are sharing the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel for their work on auctions

Earlier:

12.09pm BST

Here’s the FT’s take on why they won..

Mr Wilson showed why rational bidders tended to place bids below their own best estimate of the common value — because they were worried about the “winner’s curse” of paying too much and losing out, the committee said.

Mr Milgrom formulated a more general theory of auctions that allowed for calculating both common values and private values that vary from bidder to bidder.

12.06pm BST

Correction: This year’s prize is worth 10 million Swedish Krona – not 9m as I wrote earlier (now corrected).

Apologies, I’d forgotten it went up this year.

Continue reading…Robert Wilson and Paul Milgrom are sharing the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel for their work on auctions Paul Milgrom and Robert Wilson win!Wilson: Never really used an auction myself (apart from the ski boots)Preamble: Nobel prize for EconomicsSome possible winners….Earlier:CEBR: UK unemployment heading towards 3m by ChristmasIPPR: Government should reshape job support scheme 12.09pm BSTHere’s the FT’s take on why they won..Mr Wilson showed why rational bidders tended to place bids below their own best estimate of the common value — because they were worried about the “winner’s curse” of paying too much and losing out, the committee said. Mr Milgrom formulated a more general theory of auctions that allowed for calculating both common values and private values that vary from bidder to bidder. 12.06pm BSTCorrection: This year’s prize is worth 10 million Swedish Krona – not 9m as I wrote earlier (now corrected). Apologies, I’d forgotten it went up this year. Continue reading…