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An Experimental Test of Design Alternatives for the British 3G / UMTS Auction

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

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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File URL: http://www.wiwi.uni-bonn.de/bgsepapers/bonedp/bgse25_2001.pdf
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Paper provided by University of Bonn, Germany in its series Bonn Econ Discussion Papers with number bgse25_2001.

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Length: 25
Date of creation: Sep 2001
Date of revision:
Handle: RePEc:bon:bonedp:bgse25_2001
Contact details of provider: Postal: Bonn Graduate School of Economics, University of Bonn, Adenauerallee 24 - 26, 53113 Bonn, Germany
Fax: +49 228 73 6884
Web page: http://www.bgse.uni-bonn.de

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