This year’s winners Milgrom and Wilson studied how auctions work. They have also used their insights to design new auctions for goods and services that are difficult to sell in traditional ways, such as radio frequencies. Their findings benefit sellers, buyers and taxpayers around the world. < / P > < p > people always sell to the highest bidder or buy from the lowest bidder. Today, there are astronomical items that change hands at auctions every day, not just household goods, art and antiques, but also securities, minerals and energy. Public procurement can also be done by auction. < p > < p > using auction theory, researchers try to understand the results of different bidding and final price rules, namely the auction form. Analysis is difficult because the bidder’s behavior is strategic and based on available information. They think about what they know and what they think other bidders know. Wilson developed the theory of auction of goods with common value. The common value is uncertain before the auction, but ultimately it is the same for everyone. For example, the future value of radio frequencies or the amount of minerals in a particular area. Wilson explains why rational bidders tend to bid less than their own best estimate of common value: they worry about the curse of the winner – that is, to bid too much and fail. < / P > < p > Milgrom proposed a more general auction theory, which allows auction of not only common value, but also private value, because there are differences between different bidders. He analyzed the bidding strategies in many famous auction forms, and proved that when bidders know more about each other’s valuation in the bidding process, an auction form will bring higher expected revenue to the seller. < / P > < p > over time, society has allocated more and more complex items to users, such as landing sites and radio frequencies. In response, Milgrom and Wilson invented a new way of auctioning many interrelated items simultaneously, representing the seller’s motivation as a broad social interest rather than the biggest revenue. In 1994, the U.S. authorities first used one of these auctions to sell radio frequencies to telecom operators. Since then, many other countries have followed suit. < / P > < p > “this year’s economic science winners started with basic theory, and then applied their achievements to practice and spread them around the world. Their findings are of great benefit to society, “said Peter Fredriksson, chairman of the Nobel Committee. < p > < p > Paul Milgrom, a professor at Stanford University, enjoys a high reputation in auction theory and mechanism design theory. He graduated from Stanford University in 1979 with a doctorate in business. He is currently a professor of Anthropology and Social Sciences and a professor of economics at Stanford University. He also teaches at Harvard and MIT. Professor Milgrom is a member of the American Academy of Arts and Sciences and the American Society of econometrics. Professor Paul Milgrom has a wide range of research fields, including real-world auction design and other markets, organizational economics, bounded rationality and economic history. Economics, organization, and management (1992), CO authored by him and John Roberts, is a well-known textbook. < p > < p > Professor Paul Milgrom also leads a team to design channels and public utility auction mechanisms for many countries, including the United States, Germany, Mexico, Canada, etc. In the field of auction, Paul Milgrom, a tenured professor of economics at Stanford University, is undoubtedly a name that can not be ignored. In 1993, Mr. Milgrom accepted the entrustment of former President Bill Clinton to participate in the auction of the telecom operation license of the Federal Telecommunication Commission (FCC). He successfully completed the main design of the auction mechanism, which made the auction of FCC a great success. Therefore, Migram became one of the most famous figures in the field of racket selling and industrial economics. Professor Milgrom’s research results have been published in American economic review, Econometrica and other well-known economic journals. His research interests are incentive theory, planning and auction market design. He is famous for his work in spectrum auction design. < p > < p > Professor Paul Milgrom’s recent book “putting auction theory to work” was published by Cambridge University Press in 2004, and it is highly praised in combination with auction theory and practice. Robert Wilson received his doctorate in business management from Harvard University in 1963.. Wilson was elected member of the American Academy of Sciences (1994) and President of the world Econometric Society (1999). He is currently a professor at Stanford Business School. Its research and teaching involve market design, pricing, negotiation, industrial organization and information economics. He is an expert in game theory. As one of the early representatives of industrial organization theory, he made outstanding contributions in price theory, market design and other fields. Since the 1970s, Wilson has been engaged in the study of game theory and made important contributions, especially the concept of sequential equilibrium (Kreps & Wilson 1982) proposed by him and Kreps is an important breakthrough in the concept of solution of dynamic game with incomplete information. Since 1980s, Wilson has made important achievements in the research on the theory and application of auction mechanism design, and has become an authoritative scholar in the fields of telecommunications, transportation and energy. In 1993, Wilson’s masterpiece of price mechanism research, nonlinear pricing, was published by Oxford University Press. This book makes an encyclopedic analysis of tariff design and public utility related topics such as telecommunications, transportation and energy. As an authoritative work, Wilson won a high honor. The economics prize is one of the youngest academic awards in the Nobel family. It was founded in 1968 and has been awarded once a year since 1969. Other awards (Physics, chemistry, physiology or medicine, literature, Peace Prize) were awarded from Alfred Nobel in 1901, that is, shortly after the death of the founder of the Nobel Prize. The more accurate name of the Nobel Prize in economics is: the Swedish central bank commemorates the Alfred Nobel Prize in economics, which is used to honor scholars who have made important contributions in the field of economics. The money comes from the Swedish central bank, and the amount is the same as other Nobel prizes. The economics prize is not established according to Alfred Nobel’s will, but it is similar to the Nobel Prize in the selection process and awarding ceremony. The award of the economic prize is often questioned, which violates the requirement of “making great contributions to all mankind” in the Nobel will. Because, the contribution of economists is not consistent with the name, and there is no “knowledge system for dealing with financial disaster” among the most awarded neoclassical schools. As early as 2001, members of the Nobel family had criticized the Nobel Prize in economics in Sweden daily, believing that the establishment of the Nobel Prize in economics had lowered the style of the Nobel Prize. Since 1969, the Nobel Prize in economics has been awarded 51 times, with 84 winners. The Nobel Prize can only be given to three people at most. Among the 51 awards, 25 were awarded to one winner, 19 to two and 7 to three. < / P > < p > to date, two women have won the economic science award, Elinor Ostrom in 2009 and Esther Duflo in 2019. Global Tech