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An experimental test of design alternatives for the British 3G/UMTS auction

  • Abbink, Klaus
  • Irlenbusch, Bernd
  • Pezanis-Christou, Paul
  • Rockenbach, Bettina
  • Sadrieh, Abdolkarim
  • Selten, Reinhard

In spring 2000, the British government auctioned off licences for Third Generation mobile telecommunications services. In the preparation of the auction, two designs involving each a hybrid of an English and a sealed-bid auction were suggested by the government: a discriminatory and a uniform price variant. We report an experiment on these two designs, and also compare the results to those with a pure English auction. Both hybrids are similar in efficiency, revenue differences disappear as bidders get experienced. Compared to the discriminatory format, the pure English auction gives new entrants better chances.

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Article provided by Elsevier in its journal European Economic Review.

Volume (Year): 49 (2005)
Issue (Month): 2 (February)
Pages: 505-530

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Handle: RePEc:eee:eecrev:v:49:y:2005:i:2:p:505-530
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