American Duo Wins Nobel Economics Prize for Work on Auctions

US economists Paul Milgrom and Robert Wilson won the Nobel Economics Prize. (AFP)
US economists Paul Milgrom and Robert Wilson won the Nobel Economics Prize. (AFP)
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American Duo Wins Nobel Economics Prize for Work on Auctions

US economists Paul Milgrom and Robert Wilson won the Nobel Economics Prize. (AFP)
US economists Paul Milgrom and Robert Wilson won the Nobel Economics Prize. (AFP)

US economists Paul Milgrom and Robert Wilson won the Nobel Economics Prize on Monday for work on commercial auctions, including for goods and services difficult to sell in traditional ways such as radio frequencies, the Nobel Committee said.

The Royal Swedish Academy of Sciences noted that the discoveries by Milgrom, 72, and Wilson, 83, "have benefitted sellers, buyers and taxpayers around the world," it said in a statement.

"Auctions affect all of us at every level. Moreover, they are becoming increasingly common and increasingly complicated," the academy said, listing examples such as flexible electricity prices set by daily auctions and countries raising funds through government bond auctions.

Milgrom and Wilson's work "gives us a better understanding of how we should design auctions," jury member Peter Fredriksson told AFP.

‘Winner's curse’
Wilson was spotlighted for developing a theory on auctions focusing on a common value, such as the future value of radio frequencies, or the rights to extract minerals in a particular area.

This common value "is uncertain beforehand but, in the end, is the same for everyone," according to the academy.

Wilson's work during 1960s and 1970s showed why bidders tended to bid under what they actually thought the good was worth.

The answer was that they feared the "winner's curse," or winning the auction but paying too much.

Milgrom then came up with a more general theory of auctions by analyzing bidding strategies in different auction forms, publishing his seminal papers around 1980.

Both professors at Stanford in the United States, Wilson was Milgrom's thesis advisor and they also live on the same street.

The academy noted that while "people have always sold things to the highest bidder," societies have also had to allocate "ever more complex objects... such as landing slots and radio frequencies" among users.

"In response, Milgrom and Wilson invented new formats for auctioning off many interrelated objects simultaneously, on behalf of a seller motivated by broad societal benefit rather than maximal revenue," the academy said.

They used their theories to create a new auction model that was put into practice by US authorities in 1994 to sell radio frequencies to telecom operators, and are applied by governments around the world in the current rollout of 5G networks.

The winners will share the prize sum of 10 million Swedish kronor (about $1.1 million, 950,000 euros).

Speaking to reporters in Stockholm via a telephone link, Wilson said the announcement had been "very happy news," conceding that despite his research focus he himself had "never participated in an auction".

However, he quickly had to retract his statement. "My wife is pointing out that we bought ski boots on eBay, I guess that was an auction," Wilson said.

David Ettinger, a professor of economics at the Paris Dauphine University, told AFP that while the word auction might conjure up images of auction houses like Sotheby's and Christie's, they are in fact ubiquitous, found in everything from online advertising to government contracts.

"Auctions have fascinated game theorists because it's rare to have applications in economic life where the terms are so clearly laid out. Negotiation is fuzzy, whereas in an auction... you make a bid and the best one wins," Ettinger said.



Cheeseburgers and Chicken So Far Fail to Entice a Rescue Dog Who’s Spent Weeks on the Run in Alaska 

This image provided by Skylar Young-Bayer shows a trail camera catching a glimpse of the dog Jackie near a trap on Tuesday, March 25, 2025, in Juneau, Alaska. (Skylar Young-Bayer via AP)
This image provided by Skylar Young-Bayer shows a trail camera catching a glimpse of the dog Jackie near a trap on Tuesday, March 25, 2025, in Juneau, Alaska. (Skylar Young-Bayer via AP)
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Cheeseburgers and Chicken So Far Fail to Entice a Rescue Dog Who’s Spent Weeks on the Run in Alaska 

This image provided by Skylar Young-Bayer shows a trail camera catching a glimpse of the dog Jackie near a trap on Tuesday, March 25, 2025, in Juneau, Alaska. (Skylar Young-Bayer via AP)
This image provided by Skylar Young-Bayer shows a trail camera catching a glimpse of the dog Jackie near a trap on Tuesday, March 25, 2025, in Juneau, Alaska. (Skylar Young-Bayer via AP)

In the days after wildfires devastated the Los Angeles area, a formerly stray dog named Jackie lucked into a new life. She was rescued from an overburdened shelter in Los Angeles County, where she faced possible euthanasia, and given a home far away in Juneau, Alaska.

But Jackie didn’t stay long.

The German shepherd-husky mix slipped her collar on the first day with her new family in mid-February and absconded to a pocket of forest. Since then, she has been living by her wits — eluding a trap that was set with food such as cheeseburgers or chicken by animal control workers and volunteers worried about her.

The forested area Jackie frequents is near a busy road. Further, black bears are starting to reemerge from hibernation, raising the potential the dog could have an unfortunate run-in. Volunteers have stopped putting out food and cat kibble to avoid attracting bears.

“Maybe this is what she wants, is to be free and feral like this,” said Thom Young-Bayer, a Juneau animal control officer. “It's not a safe way for her to live here.”

Young-Bayer and his wife, Skylar, have been searching in their free time, often at night, for the skittish canine, painstakingly trying to build trust with her. Jackie has been known to burrow into the soft moss on the forest floor for cover and to avoid looking directly into the Young-Bayers’ headlamps, making it hard to detect her eyes in the dark.

On videos Thom Young-Bayer has taken with his infrared camera, Jackie’s red heat signature resembles something out of the movie “Predator.”

On a recent day, Young-Bayer caught a fleeting glimpse of Jackie in the lush forest, her dark coat helping camouflage her movements among the stumps and roots. He surveyed the undergrowth and surroundings but came up empty — as did a nearby trap he had been monitoring for weeks.

When Young-Bayer returned to a trail where a fellow animal control officer had been waiting, he learned Jackie had trotted past on a frozen pond.

Lately Young-Bayer has been encountering Jackie on every visit. Young-Bayer says that's progress. Weeks ago, if Jackie saw someone, she would flee. He and his wife aren't trying to sneak up on the dog and want to help her feel safe, he said.

Juneau Animal Rescue, a local pet adoption agency that also handles animal control and protective services, has asked that people who see Jackie report their sightings. Given the dog's skittishness, officials want to limit those searching for her.

Little is known about Jackie's history. She was brought into a California shelter as a stray in early January, days before deadly wildfires swept through the Los Angeles area. She is believed to be 2 to 3 years old. Her intake forms listed her as quiet with a moderate anxiety and stress level.

Skylar Young-Bayer, who has volunteered with rescue groups in that region, helped arrange for Jackie and two other dogs at risk of being euthanized to be transferred to Juneau for adoption. Jackie was with a foster home before her adoption placing.

Other dogs have gained fame as fugitives, including Scrim, a 17-pound, mostly terrier mutt who was recaptured in New Orleans in February — in a cat trap — after months on the lam.

Mike Mazouch, animal control and protection director for Juneau Animal Rescue, noted Jackie didn't have much time to bond with her new family before bolting. Officers deemed trying to tranquilize her as too risky because they didn't know if they would be able to find her once she was sedated.

Mazouch accompanied Thom Young-Bayer to the forest last week to disassemble the trap when Jackie came within 50 feet (15 meters) of Mazouch on the frozen pond. Mazouch snapped a photo of her as she appeared between the skinny, tall trees. He called efforts to capture her a “battle of wills.”

“She is not willing to give up, and we're not willing to give up, either,” Mazouch said.