Auction Theory and Vickrey's 1996 Economics Nobel Prize Explained

In-depth look at what auction theory is, and how the 1996 Nobel prize was won by William Vickrey. It is the first part of a mini-series. WANT TO HELP ME PRODUCE MORE CONTENT LIKE THIS? △ Consider supporting me on:   / moneymacro   △ Or for one-time donations: https://www.paypal.com/donate?hosted_... The Nobel prize in economic sciences went to auction theorists for the second time in 2020. This video is the first part of a mini-series that will also cover why Paul R. Milgrom and Robert B. Wilson won in 2020 (part 2), and why the prize is so controversial (part 3). Auction game theory is the field that studies how people act in auctions and researches the properties of various auction markets, such as the Dutch Auction, Japanese Auction, English Auction, Sealed-bid auctions, and Vickrey (or second prize) auctions. The 1996 Nobel prize in economic sciences was awarded to William Vickrey for showing that the Vickrey auction in many cases leads to a superior outcome for both buyers -who can bid without fear of the winners curse- and sellers --who are likely to get a better price as a result. The script to this video can be found here in a blog post: https://www.moneymacro.rocks/2020-10-... Narrated and produced by Dr. Joeri Schasfoort (University of Cape Town)   / joerischasfoort     / joeri-schasfoort   Attribution: star icon: artokem, CC0, via Wikimedia Commons Aalsmeer Flower Auction CCA Henk Bekker Art auction CCA cyperion syndicate Cattle auction CCA Robert Smith Dutch fish auction CCA Oxlaey DB videos cc Deutsche Bundesbank English art auction CCA Contemporary Art Fashion Slub Pop Kitsch