From auction theory to market design: Paul Milgrom and Robert Wilson’s contributions to Economics

Leandro Arozamena; Andres Fioriti; Federico Weinschelbaum

doi:10.52292/j.estudecon.2021.2248

Autores

Leandro Arozamena Universidad Torcuato Di Tella - CONICET, Argentina http://orcid.org/0000-0002-5104-3735
Andres Fioriti Universidad Nacional del Sur - INMABB, CONICET, Argentina http://orcid.org/0000-0002-6771-0643
Federico Weinschelbaum Universidad Torcuato Di Tella - CONICET, Argentina http://orcid.org/0000-0002-4008-1787

DOI:

https://doi.org/10.52292/j.estudecon.2021.2248

Palavras-chave:

Auctions, Mechanism Design, Market Design

Resumo

The 2020 Economics Nobel Prize was awarded to Paul Milgrom and Robert Wilson. Both laureates have made seminal, crucial contributions to auction theory and practical market design. Here, we briefly describe those contributions and their significance within the general context of auction theory and practice. We also review the laureates’ substantial and highly influential work in other areas of economics.

Downloads

Não há dados estatísticos.

Referências

Arozamena, L. & F. Weinschelbaum (2011a). Mecanismos de contratación pública y corrupción. In F. Navajas & A. Porto (Eds.), Progresos en economía del sector público, (pp.145-173). Buenos Aires: EDICON.

Arozamena, L. & Weinschelbaum, F. (2011b). Favoritismo en subastas. In L. Arozamena & F. Weinschelbaum (Comp.). Progresos en teoría de juegos y sus aplicaciones, (pp. 7-29). Buenos Aires: Temas Grupo Editorial.

Athey, S., & Haile, P. A. (2006). Empirical models of auctions. In R. Blundell; W.N. Newey, & T. Persson (Eds.). Advances in economics and econometrics. Recuperado de https://assets.cambridge.org/97805218/71532/-excerpt/9780521871532_excerpt.pdf DOI: https://doi.org/10.3386/w12126

Ausubel, L., Cramton, P., & Milgrom, P. (2017). The Clock-Proxy Auction: A Practical Combinatorial Auction Design. In M. Bichler & J. Goeree (Eds.). Handbook of Spectrum Auction Design (pp. 120-140). Cambridge: Cambridge University Press. doi:10.1017/9781316471609.007 DOI: https://doi.org/10.1017/9781316471609.007

Binmore, K., & Klemperer, P. (2002). The Biggest Auction Ever: The Sale of the British 3G Telecom Licences. The Economic Journal, 112(478), C74-C96. Recuperado de http://www.jstor.org/stable/798361 DOI: https://doi.org/10.1111/1468-0297.00020

Börgers, T., & Krahmer, D. (2015). An introduction to the theory of mechanism design. New York: Oxford University Press. DOI: https://doi.org/10.1093/acprof:oso/9780199734023.001.0001

Bulow, J., & Klemperer, P. (1996). Auctions Versus Negotiations. The American Economic Review, 86(1), 180-194.

Cassidy, R. (1967). Auctions and auctioneering. Bekerley, California: University of California Press. DOI: https://doi.org/10.1525/9780520322257

DeMarzo, P. M., Kremer, I., & Skrzypacz, A. (2005). Bidding with securities: Auctions and security design. American Economic Review, 95(4), 936-959. DOI: https://doi.org/10.1257/0002828054825475

Gabrielli, M. F. (2018). Análisis estructural de datos de subastas. In H. Ahumada, M.F. Gabrielli, M. Herrera & W. Sosa Escudero. Una nueva econometría. Bahía Blanca: EdiUNS.

Hatfield, J. & Milgrom, P. (2005). Matching with contracts. American Economic Review, 95(4), 913-935. DOI: https://doi.org/10.1257/0002828054825466

Hernandez-Chanto, A., & Fioriti, A. (2019). Bidding securities in projects with negative externalities. European Economic Review, 118(C), 14-36. DOI: https://doi.org/10.1016/j.euroecorev.2019.05.003

Holmström, B., & Milgrom, P. (1987). Aggregation and linearity in the provision of intertemporal incentives. Econometrica, 55(2), 303-328. DOI: https://doi.org/10.2307/1913238

Holmström, B., & Milgrom, P. R. (1991). Multitask principal-agent analyses: Incentive contracts, asset ownership, and job design. Journal of Law, Economics and Organization, 7(24), 24-52. DOI: https://doi.org/10.1093/jleo/7.special_issue.24

Kagel, J. (1995). Auctions: A survey of experimental research. In J. Kagel & A. Roth, Handbook of Experimental Economics. Princeton, New Jersey: Princeton University Press DOI: https://doi.org/10.1515/9780691213255

Kagel, J. (1995). Auctions: A Survey of Experimental Research. In J. Kagel, & A. Roth (Eds.). The Handbook of Experimental Economics (pp. 501-586). Princeton, New Jersey: Princeton University Press. doi:10.2307/j.ctvzsmff5.11 DOI: https://doi.org/10.2307/j.ctvzsmff5.11

Klemperer, P. (2002). What really matters in auction design. Journal of Economic Perspectives, 16(1), 169-189. DOI: https://doi.org/10.1257/0895330027166

Klemperer, P. (2010). The product-mix auction: A new auction design for differentiated goods. Journal of the European Economic Association, 8(2-3), 526-536. DOI: https://doi.org/10.1111/j.1542-4774.2010.tb00523.x

Klemperer, P. & Meyer, M. A. (1989). Supply function equilibria in oligopoly under uncertainty. Econometrica, 57(6), 1243–1277. DOI: https://doi.org/10.2307/1913707

Kreps, D., Milgrom, P., Roberts, J., & Wilson, R. (1982). Rational cooperation in the finitely repeated prisoners' dilemma. Journal of Economic Theory, 27(2), 245-252. DOI: https://doi.org/10.1016/0022-0531(82)90029-1

Kreps, D., & Wilson, R. (1982a). Sequential equilibria. Econometrica, 50(4), 863-894. DOI: https://doi.org/10.2307/1912767

Kreps, D., & Wilson, R. (1982b). Reputation and imperfect information. Journal of Economic Theory, 27(2), 253-279. DOI: https://doi.org/10.1016/0022-0531(82)90030-8

Krishna, V. (2009). Auction theory (2nd ed.). Cambridge: Academic Press.

Leyton-Brown, K., Milgrom, P., & Segal, I. (2017). Economics and computer science of a radio spectrum reallocation. Proceedings of the National Academy of Sciences, 114(28), 7202-7209. DOI: https://doi.org/10.1073/pnas.1701997114

Liu, T., & Bernhardt, D. (2019). Optimal equity auctions with two-dimensional types. Journal of Economic Theory, 184 (104913). Recuperado de https://doi.org/10.1016/j.jet.2019.06.009 DOI: https://doi.org/10.1016/j.jet.2019.06.009

Marshall, R. C., & Marx, L. M. (2012). The economics of collusion: Cartels and bidding rings. Cambridge, Mass: MIT Press. DOI: https://doi.org/10.7551/mitpress/9011.001.0001

McAfee, R. P., & McMillan, J. (1987). Auctions with entry. Economics Letters, 23(4), 343-347. DOI: https://doi.org/10.1016/0165-1765(87)90142-X

Milgrom, P. (1981). Rational expectations, information acquisition, and competitive bidding. Econometrica, 49(4), 921-943. DOI: https://doi.org/10.2307/1912511

Milgrom, P. (1989), Auctions and bidding: a primer. Journal of Economic Perspectives, 3(3), 3-22. DOI: https://doi.org/10.1257/jep.3.3.3

Milgrom, P. (2004). Putting auction theory to work. United Kingdom: Cambridge University Press. DOI: https://doi.org/10.1017/CBO9780511813825

Milgrom, P. (2017). Discovering prices. New York: Columbia University Press. DOI: https://doi.org/10.7312/milg17598

Milgrom, P. (2019). Auction market design: Recent innovations. Annual Review of Economics, 11, 383-405.Recuperado de https://doi.org/10.1146/annurev-economics-080218-025818 DOI: https://doi.org/10.1146/annurev-economics-080218-025818

Milgrom, P. R., Ausubel, L., Levin, J., & Segal, I. (2012). Incentive Auction Rules Option and Discussion. Appendix to the FCC’s Notice of Proposed Rulemaking, (GN Docket No 12–268). Washington D.C.: Federal Communications Commission.

Milgrom, P. R., & Shannon, C. (1994). Monotone comparative statics. Econometrica, 62(1), 157-180. DOI: https://doi.org/10.2307/2951479

Milgrom, P. R., & Stokey, N. (1982). Information, trade and common knowledge. Journal of Economic Theory, 26(1), 17-27. DOI: https://doi.org/10.1016/0022-0531(82)90046-1

Milgrom, P. R., & Weber, R. J. (1982). A theory of auctions and competitive bidding. Econometrica, 50(5), 1089-1122. DOI: https://doi.org/10.2307/1911865

Myerson, R. B. (1981). Optimal auction design. Mathematics of Operations Research, 6(1), 58-73. DOI: https://doi.org/10.1287/moor.6.1.58

Plott, C. R., & Smith, V. L. (Eds.). (2008). Handbook of experimental economics results (Vol. 1). North Holland: Elsevier.

Riley, J. G., & Samuelson, W. F. (1981). Optimal auctions. American Economic Review, 71(3), 381-392.

Roth, A. E. (2002). The economist as engineer: Game theory, experimentation, and computation as tools for design economics. Econometrica, 70(4), 1341-1378. DOI: https://doi.org/10.1111/1468-0262.00335

Royal Swedish Academy of Sciences (2020), Improvements to auction theory and inventions of new auction formats, Scientific Background on the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2020. Recuperado de www.nobelprize.org.

Samuelson, W. F. (1985). Competitive bidding with entry costs. Economics Letters, 17(1-2), 53-57. DOI: https://doi.org/10.1016/0165-1765(85)90126-0

Selten, R. (1978). The chain store paradox. Theory and Decision, 9(2), 127-159. DOI: https://doi.org/10.1007/BF00131770

Skrzypacz, A. (2013). Auctions with contingent payments—an overview. International Journal of Industrial Organization, 31(5), 666-675. DOI: https://doi.org/10.1016/j.ijindorg.2013.02.003

Wilson, R. (1969). Competitive Bidding with Disparate Information. Management Science, 15(7), 446-448. DOI: https://doi.org/10.1287/mnsc.15.7.446

Wilson, R. (1977). A bidding model of perfect competition. Review of Economic Studies, 44(3), 511-518. DOI: https://doi.org/10.2307/2296904

Wilson, R. (1979). Auctions of shares. The Quarterly Journal of Economics, 93(4), 675-689. DOI: https://doi.org/10.2307/1884475

Wilson, R. (1985). Incentive Efficiency of Double Auctions. Econometrica, 53(5), 1101-1115. doi: 10.2307/1911013 DOI: https://doi.org/10.2307/1911013

Wilson, R. (1993). Nonlinear pricing. United States: Oxford University Press.

Wilson, R. (2002). Architecture of power markets. Econometrica, 70(4), 1299-1340. DOI: https://doi.org/10.1111/1468-0262.00334

Wilson, R. (2008). Supply function equilibrium in a constrained transmission system. Operations Research, 56(2), 369-382. DOI: https://doi.org/10.1287/opre.1070.0421

Vickrey, W. (1961). Counterspeculation, auctions, and competitive sealed tenders. The Journal of Finance, 16(1), 8-37. DOI: https://doi.org/10.1111/j.1540-6261.1961.tb02789.x