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The European UMTS/IMT-2000 License Auctions

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  • Jehiel, Phillipe

    (ENPC, CERAS, Paris and UCL, London)

  • Moldovanu, Benny

    (Department of Economics, University of Mannheim, Germany)

Abstract

We survey the recent European UMTS license auctions and compare their outcomes with the predictions of a simple model that emphasizes future market structure as a main determinant of valuations for licenses. Since the main goal of most spectrum allocation procedures is economic efficiency, and since consumers (who are affected by the ensuing market structure) do not participate at the auction stage, good designs must alleviate the asymmetry among incumbents and potential entrants by actively encouraging entry.

Suggested Citation

  • Jehiel, Phillipe & Moldovanu, Benny, 2001. "The European UMTS/IMT-2000 License Auctions," Sonderforschungsbereich 504 Publications 01-20, Sonderforschungsbereich 504, Universität Mannheim;Sonderforschungsbereich 504, University of Mannheim.
    • Handle: RePEc:xrs:sfbmaa:01-20
    Note: We wish to thank Larry Ausubel, Ken Binmore, Eric van Damme, Christian Ewerhart, Roman Inderst, Martin Hellwig, Paul Klemperer, Robert Rosenthal and Klaus Schmidt. The present work supplants our earlier discussion paper ”A Critique of the Planned Rules for the German UMTS/IMT-2000 License Auction”. Jehiel: CERAS-ENPC, Paris and Department of Economics, University College London. Moldovanu: University of Mannheim, Department of Economics, Seminargebäude A5, 68131 Mannheim, mold@pool.uni-mannheim.de
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Carter, Kenneth R., 2009. "Next generation spectrum regulation for Europe: Price-guided radio policy," WIK Discussion Papers 326, WIK Wissenschaftliches Institut für Infrastruktur und Kommunikationsdienste GmbH.
    2. Marja Appelman & Joeri Gorter & Mark Lijesen & Richard Venniker & S. Onderstal, 2003. "Equal rules or equal opportunities? Demystifying level playing field," CPB Document 34.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    3. van Damme, E.E.C. & Börgers, T., 2003. "Auction Theory for Auction Design," Discussion Paper 2003-002, Tilburg University, Tilburg Law and Economic Center.
    4. David BARTOLINI, 2005. "The Italian Auction for Radio Spectrum Licences," Working Papers 231, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    5. Kenneth R. CARTER, 2013. "Next Generation Spectrum Regulation:Price-Guided Radio Policy," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(90), pages 41-62, 2nd quart.
    6. Peter Cramton & Andrzej Skrzypacz & Robert Wilson, 2007. "Revenues in the 700 MHz Spectrum Auction," Papers of Peter Cramton 07rev700, University of Maryland, Department of Economics - Peter Cramton, revised 2007.

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    More about this item

    JEL classification:

    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • D45 - Microeconomics - - Market Structure, Pricing, and Design - - - Rationing; Licensing
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

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