Explanation:

The Royal Swedish Academy of Sciences awarded the Nobel Prize for Economics (2020) to Paul R Milgrom and Robert B Wilson for their work on auction theory and new auction formats. 
About auction theory

• Auction theory studies how auctions are designed, what rules govern them, how bidders behave and what outcomes are achieved.
• Essentially, it is about how auctions lead to the discovery of the price of a commodity. 
• The auction winner’ curse: For instance, when selling telecom spectrum, a government could either think in terms of maximising its revenues or aim at making telecom more affordable to everyone. The tradeoff between above two parameters will lead to what is called the auction winner’ curse. 
• This approach led to a proliferation of lobbying and therefore how an auction is designed has a tremendous impact not just on the buyers and the sellers but also on the broader society.

Key variables that determine the outcome of an auction: Three key variables need to be understood while designing an auction.

• Rules of the auction.
• The commodity or service being put up for auction. 
• Uncertainty. 

Contribution of Milgrom and Wilson

• Wilson developed the theory for auctions of objects with a common value. Wilson showed what the “winner’s curse” is in an auction and how it affects bidding. 
• Milgrom formulated a more general theory of auctions that not only allows common values but also private values that vary from bidder to bidder.

Hence both statements are correct.