American economists Paul Milgrom and Robert Wilson have been awarded the 2020 Nobel Prize in economics for their contributions to auction theory, the Royal Swedish Academy of Sciences said on Monday.



Paul Milgrom wearing a suit and tie smiling at the camera: Left: Paul R. Milgrom, Right: Robert B. Wilson:


© Stanford Graduate School of Business
Left: Paul R. Milgrom, Right: Robert B. Wilson:

Milgrom and Wilson, who are both professors at Stanford University in California, were recognized for theoretical discoveries that improved how auctions work. According to the Royal Swedish Academy of Sciences, they also designed auction formats for goods and services that are difficult to sell 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 applications, which have spread globally. Their discoveries are of great benefit to society,” Peter Fredriksson, chair of the prize committee, said in a statement.

According to the Royal Swedish Academy of Sciences, the economists invented new formats for auctioning many interrelated objects on behalf of a seller motivated by doing good for society rather than simply achieving the highest price possible.

In 1994, US authorities first used one of their formats to sell bands of radio spectrum. Doing so helped ensure that taxpayers were benefiting from the sale of radio frequencies that were owned by the government but of enormous value to mobile network operators.

The prize for economics is officially known as the Sveriges Riksbank Prize in Economic Sciences. It was established by Sweden’s central bank and has been awarded since 1969 in memory of industrialist Alfred Nobel.

Milgrom and Wilson will share 10 million Swedish kroner ($1.1 million) in prize money.

In 2019, the economics prize was awarded to Abhijit Banerjee, Esther Duflo and Michael Kremer for their work to alleviate global poverty. Duflo, a professor at the Massachusetts Institute of Technology,

HONG KONG (Reuters) – An extremely rare, vivid purple-pink diamond mined in Russia is expected to fetch up to $38 million when it goes under the hammer on Nov. 11, the auction house Sotheby’s said on Monday.



Model poses with "The Spirit of the Rose" during a Sotheby's preview in Hong Kong


© Reuters/TYRONE SIU
Model poses with “The Spirit of the Rose” during a Sotheby’s preview in Hong Kong



The Spirit of the Rose is seen on display during a Sotheby's preview in Hong Kong


© Reuters/TYRONE SIU
The Spirit of the Rose is seen on display during a Sotheby’s preview in Hong Kong

The oval gem, which is named after a Russian ballet ‘The Spirit of the Rose’, is the largest of its kind to be offered at auction. The trend for coloured stones has increased as an asset class by the super rich in recent years.



a close up of a hand: Model poses with "The Spirit of the Rose" during a Sotheby's preview in Hong Kong


© Reuters/TYRONE SIU
Model poses with “The Spirit of the Rose” during a Sotheby’s preview in Hong Kong

Mined by Russian diamond producer Alrosa, the 14.83-carat diamond was cut from the largest pink crystal ever found in Russia, Sotheby’s said.

“The occurrence of pink diamonds in nature is extremely rare in any size. Only one percent of all pink diamonds are larger than 10-carats,” said Gary Schuler, worldwide chairman of Sotheby’s jewellery division.

Naturally coloured diamonds occur because they posses a particular lattice structure that refracts light to produce coloured, rather than white, stones.

Pink diamonds are both rare and aesthetically highly prized by collectors, analysts say.



a piece of cake on a plate: The Spirit of the Rose is seen on display during a Sotheby's preview in Hong Kong


© Reuters/TYRONE SIU
The Spirit of the Rose is seen on display during a Sotheby’s preview in Hong Kong

The gem is being shown in Hong Kong, Singapore and Taipei before being auctioned in Geneva on Nov. 11.

(Reporting by Yoyo Chow and Farah Master; Editing by Raissa Kasolowsky)

Source Article

Oct 12 (Reuters)U.S. economists Paul Milgrom and Robert Wilson won the 2020 Nobel Economics Prize for improvements to auction theory and inventions of new auction formats, the Royal Swedish Academy of Sciences said on Monday.

“The new auction formats are a beautiful example of how basic research can subsequently generate inventions that benefit society,” the academy said in a statement.

“Auctions are everywhere and affect our everyday lives. This year’s Economic Sciences Laureates, Paul Milgrom and Robert Wilson, have improved auction theory and invented new auction formats, benefiting sellers, buyers and taxpayers around the world,” the Nobel Prize’s official website tweeted.

New auction formats have been used for radio spectra, fishing quotas, aircraft landing slots and emissions allowances.

The economics prize, won by such luminaries as Paul Krugman and Milton Friedman in the past, was the final of the six awards in 2020, a year in which the Nobels have been overshadowed by the COVID-19 pandemic.

The traditional gala winners’ dinner in December has been cancelled and other parts of the celebrations are being held digitally to avoid the risk of spreading the infection.

The 10-million-Swedish-crown ($1.14 million) 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.

The Norwegian Nobel Committee plans to go ahead with an award ceremony, albeit in a reduced format due to the coronavirus pandemic, in Oslo on Dec. 10, the anniversary of the death of Alfred Nobel.

(Reporting by Simon Johnson Editing by Mark Heinrich)

(([email protected];))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Source Article