Meet Auctionomics, the startup behind the market designs that affect your daily life

PALO ALTO, CA / ACCESSWIRE / November 18, 2021 / What do broadband telephone access, Internet advertising and the matching of medical residences have in common? The answer may seem surprising, but all three are complex problems with a common solution: market design.

Photo credit: Lisa Wiseman

Solve complex problems through market design

While most people can confuse market design with business strategy, the term refers to the mathematical area of ​​economics which is surprisingly complex.

Market design involves the design of algorithms to solve complex, large-scale, multibillion-dollar problems, often related to the allocation of scarce resources. It is already being used to effectively build connections in markets such as spectrum auctions, internet advertising, charitable food bank resource allocation, organ donation, and more. In these contexts, resource allocations are improved by designing market rules that allow safe, efficient and mutually beneficial transactions.

Cutting-edge research

At the forefront of research and execution in this little celebrated field is American company, Auctionomics. Today you can stream movies to your phone, because 25 years ago the co-founder and co-founder of Auctionomics Nobel laureate, Paul Milgrom entered the Federal Communications Commission (FCC) with a floppy disk. His mission ? Prove that mobile operators can buy broadband rights more efficiently through auctions. Since then, the world has relied on his designs to allocate broadband licenses worth over $ 100 billion.

Over the years, Auctionomics has made a name for itself by providing bespoke solutions designed for complex and large-scale market and auction design challenges across the country. Large organizations such as government organizations and consulting firms hire Auctionomics to help provide solutions to complex market design problems through streamlined front-end bidder interfaces.

Auctionomics is making huge strides in the industry and has so far achieved feats that many companies can only dream of:

  • Rethinking the entire gas market in Colombia

  • Offer fishing rights auctions in Chile

  • Assessment of the likelihood of Treasury interest rate manipulation on behalf of the Department of Justice

  • Act as a key player for internet advertising giants and advise bidders worldwide

  • Reallocate underutilized radio spectrum from TV operators to mobile operators so we can all enjoy video streaming on mobile phones

Winning outnumbered

As CEO and co-founder of Auctionomics, Silvia Console Battilana is one of the very few women at the forefront of the implementation of cutting edge design in the market. It’s a well-known fact that STEM careers have a well-documented gender representation problem. For example, only 21% ofdoctoral positions in STEM related to mathematics are occupied by women. So how did Silvia find herself in such a complex and high-stakes field?

“During my doctoral studies at Stanford, I started another company to pay the bills,” recalls Silvia. “Paul had been in charge of recruiting doctoral students in the economics department and asked me for help. Together, we went from bad results in competitions with Harvard and MIT to getting the best students. the 2008 mortgage crisis hit and the US Treasury approached Paul to design a solution because he had a patent that matched the job. “

In his search for a co-founder to answer the call, Paul reached out to Silvia for coffee and a chat. He needed someone with technical expertise, social skills and good business acumen and he bet on Silvia, a promising young doctoral student.

As the banks ended up choosing a different solution, the idea of ​​Auctionomics was born and Silvia led the company to design solutions for other high stakes projects. Its co-founder Paul went on to win the 2020 Nobel Prize for his work on market design, including a $ 19 billion upscale auction designed by Auctionomics.

What future for Auctionomics?

Going forward, Auctionomics wants to tackle larger and bolder issues such as solving global water crisis in collaboration with the leader in climate technology investment in Silicon Valley, DCVC. Fresh water is not only limited in supply, but it is allocated inefficiently. By using auction design, Auctionomics wishes to efficiently allocate tradable rights to competing bodies (cities, industries, etc.) within regulatory limits.

“We want to see a world in which scarce resources are allocated efficiently. With advanced technologies that redefine rights over scarce resources, we can redesign big markets for a fairer future,” says Silvia.

Auctionomics wishes to explore its full potential by applying its proprietary theories and practices to new and evolving allocation issues. For example, COVID-19 vaccine shortages can be addressed by designing efficient exchanges in space and time for essential raw materials and manufacturing inputs. Cryptocurrency exchanges can use auction theory to effectively allocate stocks and generate income. In our rapidly changing world, auctions for spectrum licenses will transform to adapt to 5G technologies and support small-scale IOT (Internet of Things) and AI (artificial intelligence) applications.

These complex problems can only be adequately solved by combining the smartest economists with software engineers using advanced artificial intelligence and machine learning techniques.

Tips for Women in STEM and High Stake Careers

“You can make a difference as a mother and in a high-stakes multi-billion dollar company,” said Silvia, after speaking at prestigious universities such as Harvard, Berkeley and Caltech. She was also named “Young Global Leader” at the World Economic Forum, “Young European Leader” and is listed on the 40 Under 40 list of the Business Journal.

Now with two young girls, Silvia wants to inspire young women in STEM. To those outnumbered, she advises, “While there is gender bias, there are very supportive men and women. Have them as mentors and ignore those who stand in the way – because you can’t please everyone. “

Success stories like these remind us that anyone can make a difference, even outnumbered. Silvia’s strength lies in her conviction that where there is a will, there is a way, and in knowing that big, bold ambitions always come with a setback. Just because something hasn’t been done doesn’t mean it can’t be done!

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THE SOURCE: Auctionomics

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