ANN ARBOR – University of Michigan alumnus Paul Milgrom was awarded this year’s Nobel Prize in Economic Sciences. Milgrom, who graduated in 1970 with a bachelor’s in mathematics, was recognized with the prestigious international award for his work in improving auction formats. Using auction theory, the duo designed new auction formats for buying and selling nonphysical goods like radio frequencies. The moment Milgrom found out he won the Nobel Prize was captured on his home security system. Analyzing auction formats can be challenging because bidders make unilateral, calculated decisions based on the value of what they are bidding on.