Paul Milgrom

Paul Milgrom received the 2020 Nobel Prize in Economics along with Robert Wilson for improvements to auction theory and inventions of new auction formats. He developed simultaneous ascending auctions used by the FCC for spectrum licensing and has contributed foundational research on game theory, information economics, and market design. His work on the "winner's curse" in common value auctions and on simultaneous multi-unit auctions has been applied in financial markets including Treasury auctions. Milgrom co-founded Auctionomics with Ilya Segal to apply market design to real-world problems. His research on how information structures determine the strategic behavior of bidders in auctions — and how auction design can be used to maximize revenue, allocate goods efficiently, or achieve both simultaneously — has been applied to electricity markets, carbon permit auctions, and digital advertising exchanges, making auction theory one of the most practically relevant branches of economic theory.