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Making Auctions for Transport Capacity to Roll

Author

Listed:
  • David J. Salant

    (TSE-R - Toulouse School of Economics - UT Capitole - Université Toulouse Capitole - Comue de Toulouse - Communauté d'universités et établissements de Toulouse - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

  • Frédéric Cherbonnier

    (TSE-R - Toulouse School of Economics - UT Capitole - Université Toulouse Capitole - Comue de Toulouse - Communauté d'universités et établissements de Toulouse - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, IEP Toulouse - Sciences Po Toulouse - Institut d'études politiques de Toulouse)

  • Karine Van der Straeten

    (TSE-R - Toulouse School of Economics - UT Capitole - Université Toulouse Capitole - Comue de Toulouse - Communauté d'universités et établissements de Toulouse - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, CNRS - Centre National de la Recherche Scientifique)

Abstract

Policymakers increasingly auction upstream inputs to promote downstream competition in network industries, including rail slots, airport slots, spectrum, and transmission rights. We study how selling capacity as a single package versus in sequential tranches affects entry when an incumbent holds an initial endowment. In a two-stage model with Cournot competition downstream, one-shot auctions allow unrestricted incumbents block entry, whereas sequential auctions may incentivize accommodation. Simulations calibrated to the Paris–Lyon route illustrate the sensitivity of entry to tranche design and demand.

Suggested Citation

  • David J. Salant & Frédéric Cherbonnier & Karine Van der Straeten, 2026. "Making Auctions for Transport Capacity to Roll," Post-Print hal-05801496, HAL.
    • Handle: RePEc:hal:journl:hal-05801496
    DOI: 10.1111/jems.70036
    as

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