William Vickrey

AAA

DEFINITION of 'William Vickrey'

A Canadian economist who won the Nobel Prize in Economics in 1996, along with James Mirrlees, for his work on information asymmetry. Vickrey used principles of game theory to describe the functioning of auctions. He also helped to develop a model of congestion pricing that has been implemented in London: the system charges drivers a higher fee to use roads during times of peak demand, with the aim of reducing traffic congestion. Another major focus of his research was taxation. During World War II, he helped to create a new estate tax for Puerto Rico, and he worked on a revision of Japan's tax system.

INVESTOPEDIA EXPLAINS 'William Vickrey'

Born in 1914 in British Columbia, Vickrey earned his PhD from Columbia University. He taught at Columbia for decades and also worked for the National Resources Planning Board and the U.S. Treasury's Division of Tax Research. In addition, he was a member of the National Academy of Sciences and president of the American Economic Association. Vickrey died in 1996, just three days after learning of his Nobel Prize.



RELATED TERMS
  1. Nobel Memorial Prize In Economic ...

    A prestigious award acknowledging outstanding contributions to ...
  2. Economist

    An expert who studies the relationship between a society's resources ...
  3. Bidding War

    A situation where two or more buyers are so interested in an ...
  4. Asymmetric Information

    A situation in which one party in a transaction has more or superior ...
  5. Behavioral Finance

    A field of finance that proposes psychology-based theories to ...
  6. Game Theory

    A model of optimality taking into consideration not only benefits ...
Related Articles
  1. How Influential Economists Changed Our ...
    Fundamental Analysis

    How Influential Economists Changed Our ...

  2. Adam Smith: The Father Of Economics
    Economics

    Adam Smith: The Father Of Economics

  3. Nobel Winners Are Economic Prizes
    Options & Futures

    Nobel Winners Are Economic Prizes

  4. 4 Misconceptions About Free Markets
    Fundamental Analysis

    4 Misconceptions About Free Markets

comments powered by Disqus
Hot Definitions
  1. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  2. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  3. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  4. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  5. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  6. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
Trading Center