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Auction Design Enhancements for Non-Combinatorial Auctions

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Abstract

We evaluate a number of possible enhancements to the FCC auctions. We consider only changes to the current auction rules that stay within the basic format of the simultaneous multiple round auction for individual licenses. This report summarizes and extends our e-mail exchanges with FCC staff on this topic. A subsequent report will cover auctions with combination bids. Overall, the FCC spectrum auctions have been an enormous success. However, there are two design goals in the auction where important improvement can be achieved within the basic rules structure. These are restricting collusion among bidders and reducing the time taken to complete the auction. This report focuses on enhancements that help to achieve these two goals. Some of the suggested changes also streamline the auction process so large auctions can be conducted more quickly without sacrificing efficiency.

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  • Peter Cramton & John McMillan & Paul Milgrom & Bradley Miller & Bridger Mitchell & Daniel Vincent & Robert Wilson, 1997. "Auction Design Enhancements for Non-Combinatorial Auctions," Papers of Peter Cramton 97cra, University of Maryland, Department of Economics - Peter Cramton.
  • Handle: RePEc:pcc:pccumd:97cra
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    File URL: http://www.cramton.umd.edu/papers1995-1999/97cra-auction-design-enhancements.pdf
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    1. Klemperer, P., 1997. "Almost Common Value Auctions: The "Wallet Game" and its Applications to Takeover Battles and Airwaves Auctions," Economics Papers 134, Economics Group, Nuffield College, University of Oxford.
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    4. Lawrence M. Ausubel & Peter Cramton & Marek Pycia & Marzena Rostek & Marek Weretka, 2014. "Demand Reduction and Inefficiency in Multi-Unit Auctions," Review of Economic Studies, Oxford University Press, vol. 81(4), pages 1366-1400.
    5. Eric Maskin & John Riley, 2000. "Asymmetric Auctions," Review of Economic Studies, Oxford University Press, vol. 67(3), pages 413-438.
    6. Cameron, Lisa J. & Cramton, Peter & Wilson, Robert, 1997. "Using auctions to divest generation assets," The Electricity Journal, Elsevier, vol. 10(10), pages 22-31, December.
    7. Lawrence M. Ausubel & Peter Cramton & R. Preston McAfee & John McMillan, 1998. "Synergies in Wireless Telephony: Evidence from the Broadband PCS Auctions," Papers of Peter Cramton 97jems, University of Maryland, Department of Economics - Peter Cramton, revised 09 Jun 1998.
    8. Kagel, John H & Harstad, Ronald M & Levin, Dan, 1987. "Information Impact and Allocation Rules in Auctions with Affiliated Private Values: A Laboratory Study," Econometrica, Econometric Society, vol. 55(6), pages 1275-1304, November.
    9. Peter Cramton, 1995. "Money Out of Thin Air: The Nationwide Narrowband PCS Auction," Papers of Peter Cramton 95jems, University of Maryland, Department of Economics - Peter Cramton, revised 09 Jun 1998.
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    11. Cramton, Peter C, 1995. "Money Out of Thin Air: The Nationwide Narrowband PCS Auction," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 4(2), pages 267-343, Summer.
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    16. Peter Cramton, 1997. "The FCC Spectrum Auctions: An Early Assessment," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 6(3), pages 431-495, September.
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    More about this item

    Keywords

    Auctions; Spectrum Auctions; Multiple-Round Auctions; Efficiency;

    JEL classification:

    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

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