how Milgrom and Wilson changed the face of auctions
- Written by Jacob K. Goeree, Scientia Professor, UNSW
©Johan Jarnestad/The Royal Swedish Academy of Sciences
The most celebrated theory in all of economics, the so-called First Welfare Theorem, says that, provided there is perfect competition and perfect information, free markets allocate resources resources efficiently.
In other words, it says the father of economics Adam Smith was right, that...
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