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A review of radio spectrum combinatorial clock auctions

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  • Mochon, Asuncion
  • Saez, Yago

Abstract

This paper surveys a decade of Combinatorial Clock Auctions (CCAs) to allocate radio spectrum licenses from their inception to 2016. Although all CCAs share a common structure (first an allocation stage and then, an assignment stage), regulators have tailored key variables depending on their spectrum policies and market structures. We identify these variables, such as: spectrum packaging policy, reserve price, demand limit, activity rule, transparency and pricing rule. We also analyze the different ways in which regulators can design them along with their implications. This theoretical work is accompanied by a review of the practical implementation decisions in each actual auction and final outcomes. Although all the information is public, it is not easy to find because it is highly disaggregated. Finally, after having identified advantages and disadvantages in this auction model, we present some proposals to improve the actual mechanism.

Suggested Citation

  • Mochon, Asuncion & Saez, Yago, 2017. "A review of radio spectrum combinatorial clock auctions," Telecommunications Policy, Elsevier, vol. 41(5), pages 303-324.
    • Handle: RePEc:eee:telpol:v:41:y:2017:i:5:p:303-324
    DOI: 10.1016/j.telpol.2016.12.003
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    References listed on IDEAS

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    1. Peter Cramton, 2013. "Spectrum Auction Design," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 42(2), pages 161-190, March.
    2. Mochon, A. & Saez, Y. & Gomez-Barroso, J.L. & Isasi, P., 2012. "Exploring pricing rules in combinatorial sealed-bid auctions," Journal of Economic Behavior & Organization, Elsevier, vol. 82(2), pages 462-478.
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    6. Peter Cramton & Evan Kwerel & Gregory Rosston & Andrzej Skrzypacz, 2011. "Using Spectrum Auctions to Enhance Competition in Wireless Services," Journal of Law and Economics, University of Chicago Press, vol. 54(S4), pages 167-188.
    7. Maarten Janssen & Vladimir Karamychev, 2013. "Gaming in Combinatorial Clock Auctions," Tinbergen Institute Discussion Papers 13-027/VII, Tinbergen Institute, revised 16 Dec 2013.
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    9. Martin Bichler & Pasha Shabalin & Jürgen Wolf, 2013. "Do core-selecting Combinatorial Clock Auctions always lead to high efficiency? An experimental analysis of spectrum auction designs," Experimental Economics, Springer;Economic Science Association, vol. 16(4), pages 511-545, December.
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    Cited by:

    1. Mochon, Pablo & Mochon, Asuncion & Saez, Yago, 2022. "Combinatorial versus sequential auctions to allocate PPP highway projects," Transport Policy, Elsevier, vol. 117(C), pages 23-39.
    2. Goetzendorff, Andor & Bichler, Martin & Goeree, Jacob K., 2018. "Synergistic valuations and efficiency in spectrum auctions," Telecommunications Policy, Elsevier, vol. 42(1), pages 91-105.
    3. Sridhar, V. & Prasad, Rohit, 2021. "Analysis of spectrum pricing for commercial mobile services: A cross country study," Telecommunications Policy, Elsevier, vol. 45(9).
    4. Fernanda Nakano Kazama & Aluizio Fausto Ribeiro Araujo & Paulo Barros Correia & Elaine Guerrero-Peña, 2021. "Constraint-guided evolutionary algorithm for solving the winner determination problem," Journal of Heuristics, Springer, vol. 27(6), pages 1111-1150, December.
    5. Committee, Nobel Prize, 2020. "Improvements to auction theory and inventions of new auction formats," Nobel Prize in Economics documents 2020-2, Nobel Prize Committee.
    6. Blumrosen, Liad & Solan, Eilon, 2023. "Selling spectrum in the presence of shared networks: The case of the Israeli 5G auction," Telecommunications Policy, Elsevier, vol. 47(2).

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