US economists Paul Milgrom and Robert Wilson have won the Nobel Prize in economics “for improvements to auction theory and inventions of new auction formats,” the Nobel Committee reported Monday.

Milgrom and Wilson, who are the two professors at Stanford University in California. They designed auction formats for goods and services that are hard to sell conventionally, for example, radio frequencies, According to the Royal Swedish Academy of Sciences.

“This year’s Laureates in Economic Sciences started 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.

“Their discoveries have benefited sellers, buyers, and taxpayers around the world,” the prize committee said.

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

The two economists designed rules for the US Federal Communications Commission’s 1994 sale of radio frequencies to telecom administrators. Their format has since been utilized to distribute licenses worth tens of billions worldwide.

The prize money amount is 10 million Swedish kronor which will be shared equally between Paul Milgrom and Robert Wilson.

Paul R. Milgrom, born in 1948 in Detroit, USA. Ph.D. 1979 from Stanford University, Stanford, USA. Shirley and Leonard Ely Jr. Professor of Humanities and Sciences, Stanford University, USA.

Robert B. Wilson, born in 1937 in Geneva, USA. D.B.A. 1963 from Harvard University, Cambridge, USA. Adams Distinguished Professor of Management, Emeritus, Stanford University, USA.

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