Date: 2017
Type: Article
The German 4G spectrum auction : design and behavior
Economics journal, 2017, Vol. 127, No. 605, pp. 305-324
CRAMTON, Peter, OCKENFELS, Axel, The German 4G spectrum auction : design and behavior, Economics journal, 2017, Vol. 127, No. 605, pp. 305-324
- https://hdl.handle.net/1814/51964
Retrieved from Cadmus, EUI Research Repository
The 2010 German 4G spectrum auction was an unusually large simultaneous ascending multi-band auction. The bidding was competitive, the final assignment was efficient and the revenue was close to expectations. However, our analysis suggests that, theoretically, independent and rational bidders had an opportunity to implicitly coordinate on a low-revenue outcome. Coordination was difficult, though, because of a multiplicity of focal points. One important focal point involved post-auction negotiations, posing risks to bidders and the auctioneer. We analyze different bidding scenarios and in particular how post-auction negotiations can affect values, bidding and efficiency. We also briefly discuss how the simultaneous ascending auction format can be augmented to mitigate the risks implied by the possibility of strategic play.
Additional information:
First published: 24 October 2017. Creative Commons
Cadmus permanent link: https://hdl.handle.net/1814/51964
Full-text via DOI: 10.1111/ecoj.12406
ISSN: 0013-0133; 1468-0297
Publisher: Oxford University Press
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