American duo win Nobel prize in economics for improvements to auction theory

Winners of the Nobel Prize in Economic Sciences Paul R Milgrom, left, and Robert B Wilson (Anders Wiklund/TT via AP)

Two American economists have won the Nobel Prize for improving the theory of how auctions work and inventing new and better formats that are now woven into the economy.

The discoveries of Paul R Milgrom and Robert B Wilson “have benefitted sellers, buyers and taxpayers around the world”, the Nobel Committee said, noting that the auction formats developed by the winners have been used to sell radio frequencies, fishing quotas and airport landing slots.