On October 12 of Sweden time, the winners of the Nobel Prize in Economics 2020 were officially announced. They were two economists from Stanford University, Paul R. Milgrom and Robert B. Wilson, and won the prize for their "improvements in the theory of auctions and inventions of new formats". After its announcement, the ZUFE Library of Nobel Prize Collections in Economics immediately contacted John Hassler, a professor of the Institute of International Economic Studies of Stockholm University and also a member of Nobel Prize jury. We were pleased to receive his exclusive comments on the Prize.
According to Professor Hasler, trade plays an indispensable role in human civilization. Only with proper organization can trade proceed in an orderly way, and auctions are one of the oldest forms of organization. Auctions have existed for several thousand years in China and many other countries. As the Internet advances rapidly, auctions cannot only be conducted at lower prices, but also invite more objects available in today's economy, ranging from a few second-hand items, search rankings, and online advertising bidding to 5G mobile communication frequency bands. Needless to say, the theory of auctions is embraced by the public more than ever, which serves as a reflection of how the Nobel laureates are chosen — the Nobel Prize does not chase after hot spots blindly, as theories take time to be recognized.
He believes that Paul Milgrom and Robert Wilson were awarded Nobel Prize in Economics 2020 for their theoretical understanding of auctions and the inventions of such mechanisms, which will be applied for complex and interconnected auctions of items like radio spectrum in different regions.
When asked about how the theory regarding auctions affects our economic life, professor Hasler reckoned that Paul Milgrom and Robert Wilson's work has transcended theoretical research, which now can determine the best price for the buyer or the seller, help to create value as much as possible for auctions, and grant crucial products and services to the bidders who are the best candidate to use or harness them. In other words, their theory has turned out to be a tool for better allocation of public resources. Their research makes it possible to design a new auction form to meet the auctioneer's purposes, whether maximizing auction revenue or distributing the auctioned items effectively to the most suitable buyers for a better social welfare system.
Professor Li Jingkui believed that the two economists working in the theory of auctions richly deserved the award. "From a larger disciplinary perspective, this year's Nobel Prize in Economics has once again favored the game theory research after all these years. Since the Prize was awarded to John Nash, et al in 1994, many people in this field have won it. Professor Milgrom and Wilson are gurus in this certain research, commanding public respect and support. "
The Library of Nobel Prize Collections in Economics is the only Nobel Prize special collections' library authorized by the Nobel Foundation worldwide, with a collection of academic works, essays, and lecture videos of Nobel Prize winners from 1969 to 2019, and is equipped with the "Database of Nobel Prize in Economics". At present, ZUFE has embraced three Nobel Prize laureates in its Nobel Prize Workstation in Economics. In the days to come, our Library will continue to improve the construction of the workstation, provide more supporting services for the Nobel Prize winners to join the workstation, and facilitate exchanges in Chinese and foreign Economics.
