Noble Prize for Economics validates the importance of Auction Theory

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The Royal Swedish Academy of Sciences has awarded the Sveriges Riksbank Prize in Economic Sciences in memory of Alfred Nobel 2020 to Paul Milgrom and Robert Wilson, both from Stanford University, USA and leading game theory specialists. NCDEX e Markets Limited (NeML), India’s leading Agri-tech Company offering integrated e-markets and Services Company joins the economics fraternity the world over in congratulating the efforts of the gentlemen duo on this prestigious honour.

The Royal Swedish Academy of Sciences in its citation for this award, commonly known as the Noble Prize for Economics, lauds the study of how auctions work by Paul Milgrom and Robert Wilson, and how they have also used their insights to design new auction formats for goods and services that are difficult to sell in a traditional way, such as radio frequencies. Their findings have profited sellers, purchasers and taxpayers globally including Governments. Auction theory is a branch of game theory that considers human behavior in auction markets and the ensuing market outcomes. It is also successfully used as a tool to design real-life auctions.

Economist William Vickrey shared the Nobel Prize in Economics in 1996 partly for his fundamental work in theory of auctions. However, his foundational work was devoid of the means to scrutinize the complicated real-world auction design problems. It is these challenges that Robert Wilson and his former student Paul Milgrom have sought to address by suggesting improvements to auction theory and inventions of new auction formats.

We at NeML are thrilled that The Auction Theory has got this recognition through a Nobel Prize. We have been using auction theory in our business and have been developing innovative auction formats and using them for forward, reverse and multi auctions, our platforms use these various formats on a day to day basis for commodities as varied as agricultural, dairy products, fresh fruit & vegetables, petroleum products, electronic & plastic waste, development rights, emission permits, transportation contracts, TV channels, packaging material and textile products.  

Besides providing transparent and innovative auction processes, NeML is the only full-service e-market service provider in the country that enables the entire market ecosystem. NeML works closely with both Central Government, state governments and numerous Government enterprises for enhancing their efficiencies in buying and selling of various commodities. All its operations have a significant positive societal impact on the lives of the people including the bottom of pyramid directly.

#NobelPrize , #EconomicsNobelprize, #Auctions, 

Reverse Auctions, English Auctions, Forward Auctions, Group Auctions, Deutch Auctions, Ascending Auctions, uniform price auctions, discrete auctions

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