Economics’ Nobel Prize Awarded to US Specialists in Game Theory
This year’s economics Nobel Prize was awarded to two US specialists in game theory on Monday. This has happened after a 26 -year-long wait since John Nash was awarded for his amazing work in the same subject. He got depicted by Russell Crowe in a 2001 film: “A Beautiful Mind” because his was a groundbreaking piece of work done in the subject.
The two winners are Americans by names Paul R Milgrom and Robert B Wilson who were awarded for winning in designing mathematical models that are aimed at promoting “improvements to auction theory and inventions of new auction formats”. this was announced by Göran K Hansson, the current secretary-general of the Royal Swedish Academy of Sciences.
The 72-year-old Milgrom is an outstanding professor of sciences and humanities at the Shirley and Leonard Ely which is at the Stanford University. He developed the auction theory with his colleague and supervisor at the same university, Wilson, who is 83.
This important award was the final one for this week’s Nobel prizes and it comes with a cash prize worth 10m kronas and a gold medal. It is also known technically as the “Sveriges Riksbank Prize in Economic Sciences” done in remembrance of Alfred Nobel.
The auction theory is a branch of game theory that was developed end of the 1970s and early 1980s. This was after several researchers come together and decided to build mathematical models that could be used to introduce information and incentives into the bidding and the auctioning process. This would serve to maintain a fair market and minimize and prevent a lot of collisions that had been witnessed among bidder. to maintain a fair market and prevent collusion among the bidders.
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