Does spectrum auctioning harm consumers? Lessons from 3G licensing
Although the auctioning spectrum is generally considered to be highly successful, many countries still rely on beauty contests to assign spectrums. This is often attributed to the negative perceptions about the potential problems that auctions may cause, such as high licensing fees, high consumer prices, a lower incentive to invest in infrastructure, and concerns about market concentration. To address these negative perceptions, this paper estimates the effects of the auctions and the licensing fees for the 3G spectrum on consumer prices, the timing of a new service launch, and the market structure using data from the mobile markets of 21 OECD countries. Although our study uses a relatively small sample and a simple methodology, the results are meaningful since it examines a single service (3G) in OECD countries. Some of these countries have adopted auctions while others have used the traditional beauty contest approach. This combination provides a natural experiment to evaluate the impact of auctions on the mobile telecommunications market. The estimation results show no evidence to support claims of negative effects of spectrum auctions in the mobile communications market. This study calls for more positive action toward spectrum auctions in many countries who seek to improve the efficiency and transparency of spectrum assignment.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Peter Cramton & Robert Gibbons & Paul Klemperer, 1985.
"Dissolving a Partnership Efficiently,"
406, Massachusetts Institute of Technology (MIT), Department of Economics.
- Klemperer, Paul, 2002.
"How (not) to run auctions: The European 3G telecom auctions,"
European Economic Review,
Elsevier, vol. 46(4-5), pages 829-845, May.
- Paul Klemperer, 2001. "How (Not) to Run Auctions: the European 3G Telecom Auctions," Economics Papers 2002-W5, Economics Group, Nuffield College, University of Oxford, revised 01 Nov 2001.
- Klemperer, Paul, 2002. "How (Not) to Run Auctions: The European 3G Telecom Auctions," CEPR Discussion Papers 3215, C.E.P.R. Discussion Papers.
- Paul Klemperer, 2001. "How (Not) to Run Auctions: The European 3G Telecom Auctions," Economics Series Working Papers 2002-W05, University of Oxford, Department of Economics.
- Hong, Han & Shum, Matthew, 2003.
"Econometric models of asymmetric ascending auctions,"
Journal of Econometrics,
Elsevier, vol. 112(2), pages 327-358, February.
- Han Hong & Matthew Shum, 2001. "Econometric Models of Asymmetric Ascending Auctions," Economics Working Paper Archive 453, The Johns Hopkins University,Department of Economics.
- Susan Athey & Jonathan Levin, 1999.
"Information and Competition in U.S. Forest Service Timber Auctions,"
NBER Working Papers
7185, National Bureau of Economic Research, Inc.
- Susan Athey & Jonathan Levin, 2001. "Information and Competition in U.S. Forest Service Timber Auctions," Journal of Political Economy, University of Chicago Press, vol. 109(2), pages 375-417, April.
- Levin, Jonathan & Athey, Susan, 2001. "Information and Competition in U.S. Forest Service Timber Auctions," Scholarly Articles 3612768, Harvard University Department of Economics.
- Susan Athey & Jonathan Levin, 1999. "Information and Competition in U.S. Forest Service Timber Auctions," Working papers 99-12, Massachusetts Institute of Technology (MIT), Department of Economics.
- Hazlett, Thomas W. & Muñoz, Roberto E., 2009. "Spectrum allocation in Latin America: An economic analysis," Information Economics and Policy, Elsevier, vol. 21(4), pages 261-278, November.
- Cai, Hongbin, 2000. "Delay in Multilateral Bargaining under Complete Information," Journal of Economic Theory, Elsevier, vol. 93(2), pages 260-276, August.
- Thomas W. Hazlett & Roberto E. Muñoz, 2009. "A welfare analysis of spectrum allocation policies," RAND Journal of Economics, RAND Corporation, vol. 40(3), pages 424-454.
- Peter M. Guadagni & John D. C. Little, 1983. "A Logit Model of Brand Choice Calibrated on Scanner Data," Marketing Science, INFORMS, vol. 2(3), pages 203-238.
- R. Preston McAfee & John McMillan, 1996. "Analyzing the Airwaves Auction," Journal of Economic Perspectives, American Economic Association, vol. 10(1), pages 159-175, Winter.
- Wruck, Karen Hopper, 1994. "Financial policy, internal control, and performance Sealed Air Corporation's leveraged special dividend," Journal of Financial Economics, Elsevier, vol. 36(2), pages 157-192, October.
- Emmanuel Guerre & Isabelle Perrigne & Quang Vuong, 2000. "Optimal Nonparametric Estimation of First-Price Auctions," Econometrica, Econometric Society, vol. 68(3), pages 525-574, May.
When requesting a correction, please mention this item's handle: RePEc:eee:iepoli:v:23:y:2011:i:1:p:118-126. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If references are entirely missing, you can add them using this form.