Mention in Economist Magazine
Paul’s work as a bidding adviser is given a nice mention in the September 3, 2011 issue of The Economist magazine. According to the article,
“In the run-up to an online auction in 2006 of radio-spectrum licences by America’s Federal Communications Commission, Paul Milgrom, a consultant and Stanford University professor, customised his game-theory software to assist a consortium of bidders. The result was a triumph.
When the auction began, Dr Milgrom’s software tracked competitors’ bids to estimate their budgets for the 1,132 licences on offer. Crucially, the software estimated the secret values bidders placed on specific licences and determined that certain big licences were being overvalued. It directed Dr Milgrom’s clients to obtain a patchwork of smaller, less expensive licences instead. Two of his clients, Time Warner and Comcast, paid about a third less than their competitors for equivalent spectrum, saving almost $1.2 billion.”
The article unfortunately failed to mention that this consulting project was a joint effort by three Stanford professors. The two others were Jonathan Levin and Jeremy Bulow.