What's in the Air: Interlicense Synergies in the Federal Communications Commission's Broadband Personal Communication Service Spectrum Auctions
In this article, we analyze the extent of synergies among wireless licenses using information from the first two broadband Personal Communication Service (PCS) spectrum auctions by the Federal Communications Commission (FCC). We use a reduced-form regression of the winning bid for each license on a set of regressors capturing the demographics of the license region, its regulatory environment, the degree of competition for it, and the network synergies among that property and other wireless licenses, both cellular and PCS. In both auctions, the winning bid for a license was higher when the second-to-last bidder had a large national cellular telephone network or when the license was located adjacent to other PCS licenses won by either the winning or second-to-last bidder. We also find strong evidence that the state or states in which a license was located affected bidding, and there is some evidence that these effects are related to state-level wireless regulation. Copyright 1998 by the University of Chicago.
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.:
- Philip M. Parker & Lars-Hendrik Roller, 1997. "Collusive Conduct in Duopolies: Multimarket Contact and Cross-Ownership in the Mobile Telephone Industry," RAND Journal of Economics, The RAND Corporation, vol. 28(2), pages 304-322, Summer.
- R. Preston McAfee & John McMillan, 1996. "Analyzing the Airwaves Auction," Journal of Economic Perspectives, American Economic Association, vol. 10(1), pages 159-175, Winter.
- Greenstein, Shane & McMaster, Susan & Spiller, Pablo T, 1995. "The Effect of Incentive Regulation on Infrastructure Modernization: Local Exchange Companies' Deployment of Digital Technology," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 4(2), pages 187-236, Summer.
- Peter Cramton, 1997.
"The FCC Spectrum Auctions: An Early Assessment,"
Journal of Economics & Management Strategy,
Wiley Blackwell, vol. 6(3), pages 431-495, 09.
- Peter Cramton, 1997. "The FCC Spectrum Auctions: An Early Assessment," Papers of Peter Cramton 97jemsfcc, University of Maryland, Department of Economics - Peter Cramton, revised 12 Jul 1998.
- John McMillan, 1994. "Selling Spectrum Rights," Journal of Economic Perspectives, American Economic Association, vol. 8(3), pages 145-162, Summer. Full references (including those not matched with items on IDEAS)