China News Service, October 12 (Liu Cong Gan Tian) On the afternoon of October 12, Beijing time, the list of winners of the 2020 Nobel Prize in Economics was announced. American economists Paul Milgrom and Robert Wilson won the In recognition of their "improvement of auction theory and invention of new auction formats".

  As the youngest member of the Nobel Prize family, the Nobel Prize in Economics has been praised and controversial over the past 50 years.

  As the new crown epidemic is raging, the global economy has been hit hard. Can the economy recover after the epidemic, and how?

Can people find the answer from the Nobel Prize in Economics?

At noon on October 12, local time, the Royal Swedish Academy of Sciences awarded the 2020 Nobel Prize in Economics to Paul R. Milgrom and Robert B. Wilson in recognition of their “examination of auction theory” Improvements and the invention of new auction formats".

(Image source: screenshot of Nobel Prize official social account)

Winners' profile: they revolutionized the auction format

  Auctions are everywhere and affect our daily lives.

The 2020 economic prize winners Paul Milgrom and Robert Wilson improved the theory of auctions and invented new auction models that benefit sellers, buyers and taxpayers all over the world.

  According to Nobel's official website, Paul Milgrom was born in Detroit, Michigan, USA in 1948 and currently works at Stanford University.

  Another winner, Robert Wilson, is also from the United States. He was born in Geneva, Nebraska, USA in 1937, and currently works at Stanford University.

  The two winners not only clarified how the auction works and why the bidders behaved in a particular way, but also used their theories to invent a new type of auction for goods and services.

Data map: Nobel Prize Dinner.

"Young": A Different Birth

  Compared with other Nobel Prizes, the Nobel Prize in Economics is particularly "young".

  It is the only award not based on the will of the founder Alfred Nobel. It was set up by the National Bank of Sweden on the occasion of the 300th anniversary of its founding in 1968 to commemorate Nobel and promised to provide an annual bonus equal to The bonus amount of other promise awards.

  Since 1969, the Economics Prize has become the sixth award recognized by the Nobel Foundation.

Although the birth date is different, the status of this award is no different from the Physics Award, Chemistry Award and other awards. Both are awarded by the Royal Swedish Academy of Sciences.

  As of 2019, a total of 84 people have won the "Laureate" of the Economics Award.

The average age of the winners is 67, and the oldest winner is Leonid Hévitz, who was 90 years old when he won the award in 2007.

Data map: The manuscript of Alfred Nobel's will on display at the Nobel Museum in Sweden.

Controversy: Not an economist can win an economics award?

  Over the years, the Nobel Prize in Economics has repeatedly subverted "tradition", some attracting countless eyes, and some are controversial.

  The awards in 2019 can be said to be full of highlights-American economist Esther Duflo and her husband won the award together and became the first couple of "husband and wife" in this award. She herself became the youngest at 46 years old. The winner of the Economics Award is also the second female winner of the award.

  However, the experimental methods advocated by the Duflos and the other winners have caused controversy.

The Nobel Prize in Economics Jury stated that the awards were awarded to three people to recognize their contributions to "using experimental methods in global poverty alleviation."

But some people commented that their experimental methods are "useless games."

Data map: The 2019 Nobel Prize in Economics was announced, and the three shared the award.

  According to the US media, psychologist Daniel Kahneman has never taken an economics course, however, this "layman" won the Nobel Prize in Economics in 2002.

The Royal Swedish Academy of Sciences explained that Kahneman "introduced the cutting-edge research results of psychology into economics research, with particular emphasis on the process of human judgment and decision-making under uncertain circumstances."

However, Kahneman's award is still being questioned.

  Also questioned is the American economist Richard Thaler, known as the "father of behavioral economics."

Although he was recognized by the Nobel Prize in 2017, he has eaten a lot of "closed doors" in mainstream academic circles. When he met him, some big economics didn't even want to make eye contact with him.

The 2014 winner and French economist Jean Tinore won the Nobel Prize for his analysis and research on "market forces and regulation", but his proposal of vigorously amending the labor law encountered many oppositions...

  "As far as economics is concerned, no one should enjoy the authority given to a certain person by the Nobel Prize." British economist Hayek sighed after receiving the award in 1974.

  The British "Guardian" once commented that the award of the Nobel Prize in Economics may give people an illusion that the human world operates in a way that is very similar to the physical world and can be described in neutral terms; or an economist. We are "discovering eternal truth".

but it is not the truth.

Some economic models and theories are not perfect.

  Let questioning and authority coexist, and maintain humility in knowledge-perhaps, only in this way can we better promote world development.

Data map: 2001 Nobel Prize winner Joseph Stiglitz.

Special year: how to promote economic recovery?

  At the moment, the new crown epidemic is sweeping the world.

While people’s daily lives have been affected, economies around the world have also suffered heavy losses.

A number of Nobel Prize winners in economics stood up to evaluate the current economic situation during the epidemic and make suggestions for economic recovery after the epidemic.

  Lars Hansen, the winner of the Nobel Prize in Economics in 2013, believes that the number of confirmed cases of the global new crown is increasing rapidly, and major economies are facing difficult trade-offs amidst huge uncertainties.

This outbreak will indeed affect the global supply chain in the short term, and the prudent measures taken by all parties will likely curb the further spread of new coronary pneumonia.

Although the epidemic in some countries has been brought under control, we must remain vigilant.

  He also said: "When dealing with the trade-off between economy and health, many factors must be considered. Epidemiologists' knowledge alone is not enough."

  Joseph Stiglitz, winner of the 2001 Nobel Prize in Economics, outlined the economic development vision in the post-epidemic era.

For example, promote economic development in a greener and more knowledge-based direction, promote social equity, strengthen international cooperation, jointly solve global problems, and make better preparations for the next pandemic.

  But at the same time, he also emphasized that only if all countries successfully control the epidemic can the world recover from the impact of the epidemic.

Data map: Paul Romer, winner of the 2018 Nobel Prize in Economics, shows his signature chair.

  Paul Romer, winner of the Nobel Prize in Economics in 2018, also said: “Disease kills human lives and is a human tragedy. Concerns about the hypothetical economic impact should not divert the attention of public health officials or the public and let them Ignore the current important issue-saving lives. The most important, urgent and inescapable task at present is to save lives."

  In addition, Luohantang, a global research institution, has teamed up with domestic and foreign scholars to develop the "Global Epidemic Economic Tracking System" (PET) based on big data publicly available around the world.

The system can track important indicators such as the development status of the epidemic in most countries and regions around the world, the economic development stage of the epidemic, the length of economic contraction and the degree of loss, and the strictness of the epidemic policy.

  Michael Spencer, winner of the Nobel Prize in Economics, believes that PET is a comprehensive tool with real-time updates.

Using this system, timely judgments and predictions can be made about the global economy, helping governments, enterprises and other stakeholders to better grasp the epidemic development and economic status of different countries and regions to support effective and accurate decision-making. When to reopen the economy, which sectors should be opened first, etc.

Paul Romer, another Nobel laureate in economics, also made a positive evaluation.

  Although the new crown epidemic has brought an unprecedented crisis to the global economy, the pace of exploration has never stopped.

No matter how difficult it is, the laws and results of economics will still guide people out of the blind zone and usher in recovery.