Americans

2 Americans win Nobel Prize in economics for improvements to auction theory

Two American economists won the Nobel Prize in Economic Sciences on Monday for improving the way auctions work and creating new auction formats that have benefited sellers, buyers and taxpayers around the world.

Paul Milgrom and Robert Wilson, who are based at Stanford University in California, designed new auction formats for good and services that are difficult to sell in a traditional way, including radio frequencies, airport landing slots and fishing quotas.

Their work resulted in crucial practical applications that have spread globally and “are of great benefit to society,” said Peter Fredriksson, chair of the Nobel committee.

Wilson, 83, developed the theory for auctions of objects with a common value, which is “uncertain beforehand but, in the end, is the same for everyone.”



a screenshot of a computer screen: Americans Paul R. Milgrom, left, and Robert B. Wilson have won the Nobel Prize in economics for 'improvements to auction theory and inventions of new auction formats.'


© Anders Wiklund
Americans Paul R. Milgrom, left, and Robert B. Wilson have won the Nobel Prize in economics for ‘improvements to auction theory and inventions of new auction formats.’

Americans Paul R. Milgrom, left, and Robert B. Wilson have won the Nobel Prize in economics for ‘improvements to auction theory and inventions of new auction formats.’ (Anders Wiklund/)

Video: U.S. auction theory pioneers win Nobel economics prize (Reuters)

U.S. auction theory pioneers win Nobel economics prize

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“Wilson showed why rational bidders tend to place bids below their own best estimate of the common value: they are worried about the winner’s curse — that is, about paying too much and losing out,” the committee said in a statement.

Milgrom, 72, formulated “a more general theory” that also allows for what is known as “private values.” His work demonstrates that “a format will give the seller higher expected revenue when bidders learn more about each other’s estimated values during bidding.”

Technically known as the Sveriges Riksbank Prize in Economic Sciences in Memory

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Black Americans Pay More For Homes Than Any Other Group: Study Finds

A new study from MIT has found that Black Americans pay more for homeownership than any other group.

Black Americans, HomeownershipJoe Raedle / Getty Images

The study, conducted by Edward Golding, executive director of the MIT Golub Center for Finance and Policy, reports that Black Americans pay more for mortgage interest, mortgage insurance, and property taxes than other homeowners.

The disparities are as follows: $743 per year in mortgage interest payments, $550 a year mortgage insurance premiums, and$390 per year in property taxes. All-in-all this accounts for a $67,320 loss in retirement savings for Black homeowners over 30 years.

“The small differences compounding over the life of the mortgage and during homeownership can add up,” writes Golding. “Even if it is a few hundred dollars a year here and there, it can amount to another year’s salary families would otherwise have.”

“While mortgage costs are determined by markets to some extent,” said Golding, “there is a great deal of public policy that influences these rates, especially as it impacts people of color. We can and should address these issues at a policy level and start now to eliminate the large wealth gap between Black and White homeowners that we created in part through our current mortgage system.”

Check out the paper for yourself here.

[Via]

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Study Shows Black Americans Are Paying More to Own Homes

In a new study from MIT, it has been reported that Black Americans are often forced to pay more than any other group of individuals to own a home.

CNN reports that Black homeowners on average pay more in mortgage interest, mortgage insurance, and property taxes than other homeowners. Written by Edward Golding, MIT’s executive director of the Golub Center for Finance and Policy, the paper concludes that the vast difference between what Black homeowners and white homeowners pay indicates that it’s considerably more difficult for Black homeowners to accumulate wealth through ownership at the same rate as white homeowners. 

The differences between mortgage payments is $743 per year, mortgage insurance premiums $550 per year, and property taxes at $390 per year. Totaling $13,464 “over the life of the line,” the gap could result in up to $67,320 in lost retirement savings. 

“The small differences compounding over the life of the mortgage and during home ownership can add up,” writes Golding. “Even if it is a few hundred dollars a year here and there, it can amount to another year’s salary families would otherwise have.”

Golding added that the “Black-white income gap of $25,800 is exacerbated by this ‘Black tax’ on homeownership.” The study also indicates that Black households aren’t getting as many opportunities to refinance their mortgages to lower rates, which has resulted in many Black households paying a further $475 per year more than white households.

“Nearly a quarter of the disparity in homeownership costs for Black homeowners is due to local property tax assessments,” the paper reads. “A fair homeownership system must reform these inequitable federal, state, and local policies.”  

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Why Americans Have Turned to Nesting



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© Asia Pietrzyk


It has come to my attention that my apartment sucks. Objectively, that might be too harsh an assessment, but it certainly feels true right now. Don’t get me wrong: It has big, sunny windows; appliances that are functional, albeit old and ugly; and an amount of closet space that I would describe as “enough.” But the many things the apartment leaves to be desired—cheap fixtures, landlord-beige walls, and an ancient tile kitchen floor that never quite looks clean—have become unavoidably obvious to me as I’ve sat inside of it for the better part of this year.

The longer I sit, the more the flaws taunt me. The shallow kitchen sink, combined with the low slope of its faucet, makes it impossible to fill a pitcher straight from the tap, but most of my daily drinking water used to come from a machine at the office. The back wall of my kitchen, swathed in white paint, has borne the brunt of gurgling vats of spaghetti sauce and sputtering pans of fried-chicken grease, but I failed to notice the unscrubbable spots when I wasn’t standing in front of the stove preparing three meals a day, every day. The dusty ledges and shelves, unsightly window-unit air conditioners, and scuffed, jaundiced paint job weren’t so irritating when they weren’t my whole world.

In May, when the novelty of quarantine baking began to wear off—one can make only so many galettes out of frozen fruit originally bought for smoothies—my idle hands turned to the problems around me. Armed with my pathetic beginner’s tool kit, I started small. I raised and releveled a shelf that had been crooked for, by my estimation, at least two years. I ordered frames for prints that had been stashed in my closet and charged my

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Black Americans are leaving their homes to start their own all-Black communities

This report is part of “Turning Point,” a groundbreaking series by ABC News examining the racial reckoning sweeping the United States and exploring whether it can lead to lasting reconciliation.

For now, the small parcel of land known as Freedom, Georgia, is just a campground on red clay under the hot sun. But for the Black Americans who are moving here, it’s a dream.

So far, about 19 families, most of whom are from Georgia, have pooled their money to buy the nearly 97 acres of land in Wilkinson County, which is located about two hours south of Atlanta. It’s their escape, they said, from the everyday racism that feels like a part of life in the United States.

PHOTO: About 19 families, most of whom are from Georgia, have pooled their money to buy the nearly 97 acres of land in Wilkinson County, which is located about two hours south of Atlanta to establish Freedom, Georgia.

About 19 families, most of whom are from Georgia, have pooled their money to buy the nearly 97 acres of land in Wilkinson County, which is located about two hours south of Atlanta to establish Freedom, Georgia.

About 19 families, most of whom are from Georgia, have pooled their money to buy the nearly 97 acres of land in Wilkinson County, which is located about two hours south of Atlanta to establish Freedom, Georgia.

“We came together and we said, ‘You know what, we don’t like being slaughtered in the streets. We don’t like our children being there, being at the mercy of some psychopath that wants to tackle us and arrest us and bang our heads. We don’t want that. So how about we just come together and build our own,’” said Dr. Tabitha Ball, a licensed clinical psychologist from

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