Paul Milgrom
Encyclopedia
Paul Robert Milgrom is an American economist
. He is the Shirley and Leonard Ely Professor of Humanities and Sciences at Stanford University
, a position he has held since 1987. Dr. Milgrom is an expert in game theory
, specifically auction theory
and pricing strategies. He is also the co-creator of the no-trade theorem
with Nancy Stokey
, and the co-founder of several companies, the most recent of which, Auctionomics, provides software and services that create efficient markets for complex commercial auction
s and exchanges
.
. He graduated from the University of Michigan
in 1970 with an A.B. with high honors in mathematics
. In 1975 he enrolled for graduate studies at Stanford University, where he earned an M.S. in statistics
in 1978 and a Ph.D. in business in 1979. His thesis advisor, Robert B. Wilson
, would later become his collaborator in designing the spectrum auction
used by the Federal Communications Commission
.
After earning his Ph.D., Milgrom went to teach at Northwestern University
, where he stayed from 1979 to 1983. From 1982 to 1987 he was a professor of economics and management
at Yale University
. In 1987 Milgrom returned as an economics professor to his alma mater, Stanford University, where he is currently the Shirley and Leonard Ely Professor of Humanities and Sciences. He was the doctoral thesis advisor for several students, notably John Bates Clark Medal
winner Susan Athey
.
Paul Milgrom held editorial positions at various prestigious journals, including the American Economic Review
, Econometrica
and the Journal of Economic Theory
, and has been a fellow of the Econometric Society
since 1984. In 1996, he gave the Nobel Prize memorial lecture honoring Nobel prize in economics laureate William Vickrey
, who had died three days after the prize announcement. In 2006, Milgrom was elected in the National Academy of Sciences
.
Paul Milgrom won the Erwin Plein Nemmers Prize in Economics
in 2008. He won that prize "for contributions dramatically expanding the understanding of the role of information and incentives in a variety of settings, including auctions, the theory of the firm, and oligopolistic markets."
He is married to Eva Meyersson Milgrom and has two children, Josh Thurston-Milgrom and Elana Thurston-Milgrom.
and Comcast
, and they paid about a third less than their competitors for equivalent spectrum, saving almost $1.2 billion.
Economist
An economist is a professional in the social science discipline of economics. The individual may also study, develop, and apply theories and concepts from economics and write about economic policy...
. He is the Shirley and Leonard Ely Professor of Humanities and Sciences at Stanford University
Stanford University
The Leland Stanford Junior University, commonly referred to as Stanford University or Stanford, is a private research university on an campus located near Palo Alto, California. It is situated in the northwestern Santa Clara Valley on the San Francisco Peninsula, approximately northwest of San...
, a position he has held since 1987. Dr. Milgrom is an expert in game theory
Game theory
Game theory is a mathematical method for analyzing calculated circumstances, such as in games, where a person’s success is based upon the choices of others...
, specifically auction theory
Auction theory
Auction theory is an applied branch of economics which deals with how people act in auction markets and researches the properties of auction markets. There are many possible designs for an auction and typical issues studied by auction theorists include the efficiency of a given auction design,...
and pricing strategies. He is also the co-creator of the no-trade theorem
No-trade theorem
In financial economics, the no-trade theorem states that if markets are in a state of efficient equilibrium, if there are no noise traders or other non-rational interferences with prices, and if the structure by which traders or potential traders acquire information is itself common knowledge, then...
with Nancy Stokey
Nancy Stokey
Nancy Laura Stokey is the Frederick Henry Prince Distinguished Service Professor of Economics at the University of Chicago. She has earned her BA in economics from the University of Pennsylvania in 1972 and her PhD from Harvard University in 1978, her thesis advisor being Nobel Prize in Economics...
, and the co-founder of several companies, the most recent of which, Auctionomics, provides software and services that create efficient markets for complex commercial auction
Auction
An auction is a process of buying and selling goods or services by offering them up for bid, taking bids, and then selling the item to the highest bidder...
s and exchanges
Exchange (organized market)
An exchange is a highly organized market where tradable securities, commodities, foreign exchange, futures, and options contracts are sold and bought.-Description:...
.
Biography
Paul Milgrom was born on April 20, 1948 in Detroit, MichiganMichigan
Michigan is a U.S. state located in the Great Lakes Region of the United States of America. The name Michigan is the French form of the Ojibwa word mishigamaa, meaning "large water" or "large lake"....
. He graduated from the University of Michigan
University of Michigan
The University of Michigan is a public research university located in Ann Arbor, Michigan in the United States. It is the state's oldest university and the flagship campus of the University of Michigan...
in 1970 with an A.B. with high honors in mathematics
Mathematics
Mathematics is the study of quantity, space, structure, and change. Mathematicians seek out patterns and formulate new conjectures. Mathematicians resolve the truth or falsity of conjectures by mathematical proofs, which are arguments sufficient to convince other mathematicians of their validity...
. In 1975 he enrolled for graduate studies at Stanford University, where he earned an M.S. in statistics
Statistics
Statistics is the study of the collection, organization, analysis, and interpretation of data. It deals with all aspects of this, including the planning of data collection in terms of the design of surveys and experiments....
in 1978 and a Ph.D. in business in 1979. His thesis advisor, Robert B. Wilson
Robert B. Wilson
Robert Butler "Bob" Wilson, Jr. is an American economist and the Adams Distinguished Professor of Management, Emeritus at Stanford University. He is known for his contributions to management science and business economics. His doctoral thesis introduced sequential quadratic programming, which...
, would later become his collaborator in designing the spectrum auction
Spectrum auction
A spectrum auction is a process whereby a government uses an auction system to sell the rights to transmit signals over specific bands of the electromagnetic spectrum and to assign scarce spectrum resources. Depending on the specific auction format used, a spectrum auction can last from a single...
used by the Federal Communications Commission
Federal Communications Commission
The Federal Communications Commission is an independent agency of the United States government, created, Congressional statute , and with the majority of its commissioners appointed by the current President. The FCC works towards six goals in the areas of broadband, competition, the spectrum, the...
.
After earning his Ph.D., Milgrom went to teach at Northwestern University
Northwestern University
Northwestern University is a private research university in Evanston and Chicago, Illinois, USA. Northwestern has eleven undergraduate, graduate, and professional schools offering 124 undergraduate degrees and 145 graduate and professional degrees....
, where he stayed from 1979 to 1983. From 1982 to 1987 he was a professor of economics and management
Management
Management in all business and organizational activities is the act of getting people together to accomplish desired goals and objectives using available resources efficiently and effectively...
at Yale University
Yale University
Yale University is a private, Ivy League university located in New Haven, Connecticut, United States. Founded in 1701 in the Colony of Connecticut, the university is the third-oldest institution of higher education in the United States...
. In 1987 Milgrom returned as an economics professor to his alma mater, Stanford University, where he is currently the Shirley and Leonard Ely Professor of Humanities and Sciences. He was the doctoral thesis advisor for several students, notably John Bates Clark Medal
John Bates Clark Medal
The John Bates Clark Medal is awarded by the American Economic Association to "that American economist under the age of forty who is adjudged to have made a significant contribution to economic thought and knowledge"...
winner Susan Athey
Susan Athey
Susan Carleton Athey is an American economist. She is currently Professor of Economics at Harvard University and the first female winner of the John Bates Clark Medal.- Early life :...
.
Paul Milgrom held editorial positions at various prestigious journals, including the American Economic Review
American Economic Review
The American Economic Review is a peer-reviewed academic journal of economics publishing seven issues annually by the American Economic Association. First published in 1911, it is considered one of the most prestigious journals in the field. The current editor-in-chief is Penny Goldberg . The...
, Econometrica
Econometrica
Econometrica is a peer-reviewed academic journal of economics, publishing articles not only in econometrics but in many areas of economics. It is published by the Econometric Society and distributed by Wiley-Blackwell. Econometrica is one of the most highly ranked economics journals in the world...
and the Journal of Economic Theory
Journal of Economic Theory
The Journal of Economic Theory, often referred to as JET, is an important scholarly journal in the field of economics. Although the journal was originally intended as a specialty journal in mathematical economics, JET is now generally regarded as the leading journal in economic theory and one of...
, and has been a fellow of the Econometric Society
Econometric Society
The Econometric Society is an international society for the advancement of economic theory in its relation with statistics and mathematics. It was founded on December 29, 1930 at the Stalton Hotel in Cleveland, Ohio....
since 1984. In 1996, he gave the Nobel Prize memorial lecture honoring Nobel prize in economics laureate William Vickrey
William Vickrey
William Spencer Vickrey was a Canadian professor of economics and Nobel Laureate. Vickrey was awarded the Nobel Memorial Prize in Economics with James Mirrlees for their research into the economic theory of incentives under asymmetric information...
, who had died three days after the prize announcement. In 2006, Milgrom was elected in the National Academy of Sciences
United States National Academy of Sciences
The National Academy of Sciences is a corporation in the United States whose members serve pro bono as "advisers to the nation on science, engineering, and medicine." As a national academy, new members of the organization are elected annually by current members, based on their distinguished and...
.
Paul Milgrom won the Erwin Plein Nemmers Prize in Economics
Erwin Plein Nemmers Prize in Economics
The Erwin Plein Nemmers Prize in Economics is awarded biennially from Northwestern University. It was initially endowed along with a companion prize, the Frederic Esser Nemmers Prize in Mathematics. Both are part a $14 million donation from the Nemmers brothers, who envisioned creating an award...
in 2008. He won that prize "for contributions dramatically expanding the understanding of the role of information and incentives in a variety of settings, including auctions, the theory of the firm, and oligopolistic markets."
He is married to Eva Meyersson Milgrom and has two children, Josh Thurston-Milgrom and Elana Thurston-Milgrom.
Professional life
Milgrom has done a great job as a consultant. In his most recent company, Auctionomics, he had advised many big corporations and helped them save money in big stake auctions. In one auction, he consulted Time WarnerTime Warner
Time Warner is one of the world's largest media companies, headquartered in the Time Warner Center in New York City. Formerly two separate companies, Warner Communications, Inc...
and Comcast
Comcast
Comcast Corporation is the largest cable operator, home Internet service provider, and fourth largest home telephone service provider in the United States, providing cable television, broadband Internet, and telephone service to both residential and commercial customers in 39 states and the...
, and they paid about a third less than their competitors for equivalent spectrum, saving almost $1.2 billion.