Stockholm Two American economists won the Nobel Prize on Monday for their research on how the telecom companies receive airwaves from the government, the way Google sells advertising, research that emphasizes the importance of today’s economy.
Paul R. of both “Stanford University”. Milgom and Robert b. Wilson’s discovery “has benefited sellers, buyers and taxpayers around the world,” the Nobel Committee said.
Wilson once held a Ph.D. Also becomes a consultant, and both neighbors. Arriving at his home in California by phone, Milgrom said he received the news of his victory “strangely”.
“I was knocked on my door by Bob Wilson,” she told the Associated Press when she was still in the middle of the night.
Milgrom, 72, said students, friends and colleagues had long suggested that he and 83-year-old Wilson would be up for the prize.
“It’s nice to have their respect but also their affection,” Milgrom said.
The two men had a difficult time managing the auction effectively. The committee said Wilson’s work showed “why rational bidders bid below their best estimate of normal value” – which could mean that the item goes for less than its value and the buyer may not even want it. Which is what he wants the most, if the auction is working properly is supposed to happen.
The effects of his work can be seen all around. “Online advertising sells at auction,” said David Warsch, who gave a track of economic research on his blog Economic Principles. “That Google was able to quickly adopt this method and relied entirely on the theory developed by Milgrom and its competitors and their students.”
Work is more than money. Some governments, for example, auction off pollution rights in the hope of reducing emissions; Cleaner companies can resell unreserved rights to deer tier, giving companies an economic incentive to green their operations. Ingrid Werner, a member of the Nobel Committee, said the aim was not always to increase the seller’s income, but also to have a social purpose.
One problem for sellers in the auction is the so-called winner’s curse. If buyers are preparing to buy fishing rights, they will have to bid without knowing what the future price of fish will be. They start worrying that they will only win by overpaying, and they may respond by scaling their offers fur.
Research by Wilson and Milgram has shown that, before bidding begins, to provide as much information as possible, it may provide an independent evaluation of the item sold.
“The grass strategy also faced snakes,” Wilson said. This includes the company that keeps most of the items sold in the auction secret and then makes a last-minute winning bid.
“It’s like cutting an eBay auction,” Wilson told the AP, adding that they had created rules that would force bidders to declare their interest.
His research has had a major impact on the telecommunications industry, where private companies seek licenses from the government to use publicly owned radio frequencies for everything from mobile phone calls to Internet payments.
Before the 1990s, U.S. The government essentially held “beauty contests” to handle the frequency so that companies could sue for licenses. This approach encouraged aggressive lobbying, but did not raise more money for the treasury.
In 1994, the U.S. government turned to auction. Milgrom and Wilson (with Preston McAfee Fee, now Google) designed an auction format in which all licenses were sold at the same time. That constitution discourages speculators from buying frequencies in a specific geographic area and then reselling them to large telecommunications companies seeking to patch the national or regional network together.
The auction raised 17 617 million – selling frequencies that were previously offered for virtually nothing – and became a model for countries from Canada to India. The constitution has also been used to auction electricity and natural gas.
Wilson said he thought his time to win the Nobel Prize for work was over.
Calling reporters in Stockholm after learning of his victory, Wills struggled to think about how he had recently participated in the auction. But then added: “My wife pointed out to me that we bought ski boots on eBay.”
Wills described Millegram, who developed a more general theory of auction, as “the kind of genius behind all the works of this auction.”
Americans will clearly rank among this year’s Nobel laureates. Seven of the 11 winners have been Americans, excluding the Peace Prize that went to the UN’s World Food Program.
Announcing the award, Goran Hansen, secretary general of the Royal Swedish Academy of Sciences, said American investment in research is reflected in the WWII. “And we’ll see how that trend can change,” he added.
Wilson said, given the coronavirus epidemic, he had no immediate plans on what to do with the gold medal, with part of the prize money of 10 million kroner (1 1.1 million).
He said, ‘Maybe I’ll just save it for my wife, my kids.’
Last year’s award went to two researchers from the Massachusetts Institute of Technology and a third from Harvard University for their groundbreaking research in an effort to reduce global poverty.
Few economists may have predicted last fall that the Earth would virtually freeze within months, as governments closed their borders, imposed lockdowns and ordered other measures to stem the spread of COVID-19, including a sharp rise in global business activity. Decreased.
The prestigious award comes with a cash prize of 10 million kroner (1 1.1 million) and a gold medal.
On Monday, the Nobel Committee presented the award Prize for physiology and medicine For detection of liver-raving hepatitis C virus. Tuesday Prize for Physics Progressive advances in understanding the mysteries of cosmic black holes and Chemistry prize Scientists went behind a powerful gene-editing tool on Wednesday.
This Literature prize American poet Louis Gluck was awarded Thursday for his “candid and uncontrollable” work. Won the World Food Program Nobel Peace Prize Friday in an effort to combat hunger around the world.
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