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Selling Spectrum Rights

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  • John McMillan

Abstract

The design of the FCC spectrum-license auction is a case study in the application of economic theory. Auction theory helped address policy questions such as: Should an open auction or a sealed-bid auction be used? Should the licenses be auctioned sequentially or simultaneously? Should the government allow bids for combinations of licenses, or should it accept only single-license bids? How should the auction be structured to promote the interests of minority-owned and other designated firms? Should the government impose royalties or reserve prices? How much should the bidders be informed about their competition?

Suggested Citation

  • John McMillan, 1994. "Selling Spectrum Rights," Journal of Economic Perspectives, American Economic Association, vol. 8(3), pages 145-162, Summer.
  • Handle: RePEc:aea:jecper:v:8:y:1994:i:3:p:145-62
    Note: DOI: 10.1257/jep.8.3.145
    as

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    File URL: http://www.aeaweb.org/articles.php?doi=10.1257/jep.8.3.145
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    JEL classification:

    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
    • L98 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Government Policy

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