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NOBEL ECONOMY AWARD FOR AUCTION THEORY

  • 2021-06-21

The 2020 Nobel Prize in Economics was awarded to Professors Robert Wilson and Paul Milgrom for their contribution to auction theory as well as their active participation in practical designs of highly successful auctions.

 

Although the use of auction mechanisms for the sale of all kinds of objects (and living beings) dates back to the beginning of civilization, it is considered that the first formal article on auction theory was designed by William Vickrey (1961). An article by Vickrey opened the field of auction theory and was followed by countless articles, and this researcher was also awarded the Nobel Prize in Economics in 1996.

 

The auction theory is one of the most collective constructions of economic theory, having received the contribution of a large number of top researchers, both in its theoretical development and in its fantastic applications.

 

One of the many conclusions that derive from these studies has to do with the effectiveness of this sales model, both from the point of view of sellers and buyers, with the information provided about the auctioned product being considered a fundamental variable for its success.

 

Since the beginning, EuroEstates has invested heavily in this aspect, providing maximum transparency and information about the auctioned products.