Two of the American scientists, professors at the Stanford university in California are reported to have been awarded the 2020 Nobel prize in economics for their contribution of the auction theory; the Royal Swedish Academy of Sciences said on Monday.
They researched in the theoretical aspect of how auctions work. According to the Royal Swedish Academy of Sciences they formulated methods for goods and services sale that are difficult to be auctioned in a traditional way, such as radio frequencies.
“This year’s Laureates in Economic Sciences started out with fundamental theory and later used their results in practical application, which have spread globally. Their discoveries are of great benefit to the society,” Peter Fredriksson, chair of the prize committee, said in a statement.
According to the Royal Swedish Academy of Sciences, the scientists have invented new modules that could be used by the seller, by the knowledge of which the seller could reap benefits not only for himself but foe the society too.
Previously, such format methods of auction were used in 1994, where the US authorities sold bands of radio; to ensure the tax payers were benefiting from the sale that were owned by the government but valued by the mobile network operators.
Prize In Economic Sciences
The prize of the economists is solemnly known as the Sverges Riksbank Prize in Economic Sciences. It was entrenched in the 1969 by The Sweden’s Central Bank and is awarded in the memory of the industrialist Alfred Nobel.
Milgrom and Wilson received a total of 10 million Swedish Kroner ($1.1 million) all together in prize money.
In the year 2019, Abhijeet Banarjee, Esther Duflo and Michael Kremer were awarded the Economics prize for their contribution in alleviation of global poverty. Duflo, a professor at the Massachusetts Institute of Technology, was the youngest in the trio and the only second lady to be awarded this prize.
The World Food Programme, held last week received the 2020 Nobel Peace Prize in the wake of combating hunger and its “contribution to betting conditions for peace in conflict-affected areas.”
Under the Royal Swedish Academy of Sciences, the researchers have developed new modules that the seller will use to support, not only himself, but the community as well.
Previously, such auction strategies were used in 1994 when the US authorities sold radio bands; to ensure that tax payers profit from government-owned purchases which mobile network operators esteem.