Winning Play in Spectrum Auctions
AbstractWe describe factors that make bidding in large spectrum auctions complex including exposure and budget problems, the role of timing within an ascending auction, and the possibilities for price forecasting and how economic and game-theoretic analysis can assist bidders in overcoming these problems. As an example, we consider the case of the FCC's Advanced Wireless Service auction, in which a new entrant, SpectrumCo, faced all these problems yet managed to purchase nationwide coverage at a discount of roughly a third relative to the prices paid by its incumbent competitors in the same auction, saving more than a billion dollars.
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Bibliographic InfoPaper provided by Stanford Institute for Economic Policy Research in its series Discussion Papers with number 08-023.
Date of creation: Feb 2009
Date of revision:
Game Theory; Bidding; Exposure; Budget Problems; Price Forecasting;
Other versions of this item:
- C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
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