Nobel Prize awarded to University of MI alum

Daniel Fowler
October 13, 2020

Speaking to reporters by telephone, Professor Wilson welcomed the "happy news" of the award and revealed his own personal experience of auction participation was limited.

The 10-million-Swedish-crown (£860,000) economics prize is not one of the original five awards created in the 1895 will of industrialist and dynamite inventor Alfred Nobel, but was established by Sweden's central bank and first awarded in 1969. Wilson used game theory to establish the best bidding strategy in common value auctions, and showed how it leads to low bids as people try to avoid the "winner's curse"-overestimating the common value and winning the auction at too high a price". Probably I'll just save it for my wife, my children, ' Wilson said.

The 2020 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel is again opting to laud the real-world application of the discipline, after recent years of honoring groundbreaking research ranging from inequality to climate change to behavioral economics.

Fredriksson said both had applied theory to "more realistic subjects", with Wilson beginning his work on the subject in the 1960s and Milgrom in the 1980s.

In the 1990s, the U.S. Federal Communications Commission put this theory to work to better allocate radio frequency bands to telecom and media companies. "You've won the Nobel Prize". "I've never actively participated in an auction personally", he replied.

Prof K Nageshwar: Food Inflation Over 10 Percent
Food price inflation for rural areas stood at 10.60 per cent in September 2020, up from 9.11 per cent in August. The government has instructed MPC to tame retail inflation based on CPI at 4 percent (+,- 2 percent).

The winners were announced in Stockholm by Goran Hansson, secretary-general of the Royal Swedish Academy of Sciences, rounding off a week of Nobel Prizes. "My wife is pointing out that we bought ski boots on eBay, I guess that was an auction", Mr Wilson said.

The award comes at a time of dramatic economic upheaval that few economists could have predicted last fall: In the face of the coronavirus pandemic, governments have closed borders, imposed lockdowns and ordered other measures, triggering a sharp dip in business activity.

On Monday, the Nobel Committee awarded the prize for physiology and medicine for discovering the liver-ravaging hepatitis C virus. The World Food Program won the Nobel Peace Prize for its effort to combat hunger worldwide.

The literature prize was awarded to American poet Louise Gluck for her "candid and uncompromising" work.

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