Computer science tackles 30-year-old economics problem
Monday, June 25, 2012 - 04:50
in Mathematics & Economics
In 2007, the University of Chicago's Roger Myerson won the Nobel Memorial Prize in Economic Sciences in part for research he had published, in 1981, on auction design. Using the tools of game theory, Myerson showed how to structure an auction for a single item such that if all the bidders adopted the bidding strategies in their best interest, the auctioneer would realize the greatest profit.