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.

OAK PARK, Mich. – Stanford University Professor Paul Milgrom didn’t know he had won a Nobel Prize in Economic Sciences because he was asleep. “My phones were all set up for Do Not Disturb...The co-winner, Bob (Robert) Wilson, is also my neighbor across the street. He came over at about 2 a.m. and was pounding on my door," said Milgrom, who graduated from Oak Park High School. Milgrom and Wilson, who is also a professor at Stanford University, won the Nobel Prize for improvements in auction theory. “Milgrom designed a general theory of auctions that takes into consideration common values of auction markets as well as private values, which vary from bidder to bidder,” read the release.