American economists Paul Milgrom and Robert Wilson. (Photo: indianexpress.com)

Milgrom and Wilson, who are both professors at Stanford University in California, were recognized for theoretical discoveries that improved how auctions work. They also designed auction formats for goods and services that are difficult to sell in a traditional way, such as radio frequencies.

The prize for economics was established by Sweden's central bank and has been awarded since 1969 in memory of industrialist Alfred Nobel.