On January 1, I apparently became the first economist ever to be awarded funds under the Small Business Innovative Research (SBIR) program of the National Science Foundation. I am principal investigator for Auctionomics on a proposal entitled “Incorporating Bidder Budgets in Multi-Item Auctions.” Bidder budgets are important in practice, but normally excluded from the messages communicated by bidders to the auctioneer during the course of an auction. Auctionomics is developing technology to make appropriate use of budget messages.
Over the years, I’ve invented several new multi-item auction mechanisms intended for use in practice. Portugal has now adopted the Day-Milgrom core-selecting auction mechanism for an upcoming radio spectrum auction. Detailed rules can be found here or on the Portuguese regulator’s website.
A paper explaining the logic of this design — “Core-Selecting Auctions” — can be found in the Publications section of this website (link).
Congratulations to Bruno Strulovici, winner of the Young Researcher Prize from Review of Financial Studies for his joint paper on “Performance Sensitive Debt.” Bruno did his doctoral work at Stanford in the department of Management Science and Engineering, supervised by Thomas Weber, before shifting his research into economics. I am Bruno’s “economics mentor” and celebrate his success with him!
Nicolaj Siggelkow reports that he has just been promoted to full professor at the Wharton School at the University of Pennsylvania. Congratulations to Nicolaj!
Nicolaj prepared his award-winning Stanford undergraduate thesis in 1993 under my supervision. He went on to do his graduate studies at Harvard Business School, receiving his doctorate in 1998. It is particularly interesting that the themes Siggelkow began to develop in his undergraduate thesis, including studies of the fit between a company’s strategy and its business practices or simply among its practices , continue to inspire some of his current research more than 15 years later!