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How (Not) to Run Auctions: The European 3G Telecom Auctions

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  • Klemperer, Paul

Abstract

There were enormous differences in the revenues from the European ?third generation? (3G, or ?MTS?) mobile-phone license auctions, from 20 Euros per capita in Switzerland to 650 Euros per capita in the UK, though the values of the licences sold were similar. Poor auction designs in some countries facilitated collusion between firms and failed to attract entrants. The sequencing of the auctions was also crucial. We discuss the auctions in the UK, Netherlands, Germany, Italy, Austria, Switzerland, Belgium, Greece and Denmark.

Suggested Citation

  • Klemperer, Paul, 2002. "How (Not) to Run Auctions: The European 3G Telecom Auctions," CEPR Discussion Papers 3215, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:3215
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    References listed on IDEAS

    as
    1. Paul Klemperer, 2002. "Using and Abusing Economic Theory," Economics Papers 2003-W02, Economics Group, Nuffield College, University of Oxford.
    2. 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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    12. Paul Klemperer (ed.), 2000. "The Economic Theory of Auctions," Books, Edward Elgar Publishing, volume 0, number 1669.
    13. Klemperer, Paul, 2000. "Why every Economist should Learn some Auction Theory," CEPR Discussion Papers 2572, C.E.P.R. Discussion Papers.
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    18. Tilman Börgers & Christian Dustmann, 2005. "Strange Bids: Bidding Behaviour in the United Kingdom's Third Generation Spectrum Auction," Economic Journal, Royal Economic Society, vol. 115(505), pages 551-578, July.
    19. Klemperer, Paul, 1998. "Auctions with almost common values: The 'Wallet Game' and its applications," European Economic Review, Elsevier, vol. 42(3-5), pages 757-769, May.
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    21. Paul Klemperer, 2002. "What Really Matters in Auction Design," Journal of Economic Perspectives, American Economic Association, vol. 16(1), pages 169-189, Winter.
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    2. Ken Binmore & Paul Klemperer, 2002. "The Biggest Auction Ever: the Sale of the British 3G Telecom Licences," Economic Journal, Royal Economic Society, vol. 112(478), pages 74-96, March.
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    More about this item

    Keywords

    Auctions; Telecommunications; Spectrum auctions; 3g; Umts; Bidding;
    All these keywords.

    JEL classification:

    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

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