IDEAS home Printed from https://ideas.repec.org/a/mhr/finarc/urnsici0015-2218(200207)583_260sahtsa_2.0.tx_2-9.html
   My bibliography  Save this article

Spectrum Auctions: How They Should and How They Should Not Be Shaped

Author

Listed:
  • Friedel Bolle
  • Yves Breitmoser

Abstract

Spectrum auctions are multiple-unit auctions where the objects auctioned are not necessarily identical. It is shown that the requirement of independent bids in such auction can prevent the existence of pure strategy equilibria (which implies inefficiency). Thus, we suggest that spectrum auctions should allow combinatorial bids. Additionally, all the auctions mentioned were multiple-round auctions - those are shown to offer an invitation to collude. A Folk Theorem as in repeated games can be proven. Preferable to a multiple-rounds scheme is a Vickrey auction, or, at least, the multiple-rounds scheme should (with a certain probability) be supplemented with a publicly announced last round. The paper is also (briefly) concerned with some other problems as a simultaneous vs. sequential procedure, the Winners' Curse, entry into the auctions, and the consideration of consumers' interests in the resulting (e.g. mobile phone) market.

Suggested Citation

  • Friedel Bolle & Yves Breitmoser, 2002. "Spectrum Auctions: How They Should and How They Should Not Be Shaped," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 58(3), pages 260-285, July.
    • Handle: RePEc:mhr:finarc:urn:sici:0015-2218(200207)58:3_260:sahtsa_2.0.tx_2-9
    as

    Download full text from publisher

    File URL: https://www.mohrsiebeck.com/en/article/spectrum-auctions-how-they-should-and-how-they-should-not-be-shaped-1016280015221022905858
    Download Restriction: Fulltext access is included for subscribers to the printed version.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Abbink, Klaus & Irlenbusch, Bernd & Pezanis-Christou, Paul & Rockenbach, Bettina & Sadrieh, Abdolkarim & Selten, Reinhard, 2005. "An experimental test of design alternatives for the British 3G/UMTS auction," European Economic Review, Elsevier, vol. 49(2), pages 505-530, February.
    2. Bolle, Friedel, 2008. "Allocation decisions in network industries," Energy Economics, Elsevier, vol. 30(1), pages 97-112, January.

    More about this item

    JEL classification:

    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mhr:finarc:urn:sici:0015-2218(200207)58:3_260:sahtsa_2.0.tx_2-9. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Thomas Wolpert (email available below). General contact details of provider: https://www.mohrsiebeck.com/fa .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.