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The Biggest Auction Ever: the Sale of the British 3G Telecom Licences

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  • Ken Binmore

    (University College London)

  • Paul Klemperer

    (Nuffield College, Oxford)

Abstract

This paper reviews the part played by economists in organising the British third-generation mobile-phone licence auction that concluded on 27 April 2000. It raised £22½ billion ($34 billion or 2½% of GNP) and was widely described at the time as the biggest auction ever. We discuss the merits of auctions versus "beauty contests”, the aims of the auction, the problems we faced, the auction designs we considered, and the mistakes that were made. Copyright Royal Economic Society 2002.

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Bibliographic Info

Article provided by Royal Economic Society in its journal Economic Journal.

Volume (Year): 112 (2002)
Issue (Month): 478 (March)
Pages: C74-C96

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Handle: RePEc:ecj:econjl:v:112:y:2002:i:478:p:c74-c96

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  10. Jeremy Bulow & Paul Klemperer, 2002. "Prices and the Winner's Curse," RAND Journal of Economics, The RAND Corporation, vol. 33(1), pages 1-21, Spring.
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  19. John Cable & Andrew Henley & Kevin Holland, 2002. "Pot of gold or winner's curse? An event study of the auctions of 3G mobile telephone licences in the UK," Fiscal Studies, Institute for Fiscal Studies, vol. 23(4), pages 447-462, December.
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