License auctions with exit (and entry) options: Alternative remedies for the exposure problem
Inspired by some spectrum auctions, we consider a stylized license auction with incumbents and one entrant. Whereas the entrant values only the bundle of several units (synergy), incumbents are subject to non-increasing demand. The seller proactively encourages entry and restricts incumbent bidders. In this framework, an English clock auction gives rise to an exposure problem that distorts efficiency and impairs revenue. We consider three remedies: a (constrained) Vickrey package auction, an English clock auction with exit option that allows the entrant to annul his bid, and an English clock auction with exit and entry option that lifts the bidding restriction if entry failed.
|Date of creation:||Dec 2012|
|Date of revision:|
|Contact details of provider:|| Postal: Geschwister-Scholl-Platz 1, D-80539 Munich, Germany|
Web page: http://www.sfbtr15.de/
More information through EDIRC
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.:
- Robert W. Rosenthal & Ruqu Wang, 1995.
"Simultaneous Auctions with Synergies and Common Values,"
0060, Boston University - Industry Studies Programme.
- Rosenthal, Robert W. & Wang, Ruqu, 1996. "Simultaneous Auctions with Synergies and Common Values," Games and Economic Behavior, Elsevier, vol. 17(1), pages 32-55, November.
- Paul Klemperer, 2001.
"How (Not) to Run Auctions: the European 3G Telecom Auctions,"
2002-W5, Economics Group, Nuffield College, University of Oxford, revised 01 Nov 2001.
- Klemperer, Paul, 2002. "How (not) to run auctions: The European 3G telecom auctions," European Economic Review, Elsevier, vol. 46(4-5), pages 829-845, May.
- Klemperer, Paul, 2002. "How (Not) to Run Auctions: The European 3G Telecom Auctions," CEPR Discussion Papers 3215, C.E.P.R. Discussion Papers.
- van Damme, E.E.C., 2002.
"The European UMTS-auction,"
2002-100, Tilburg University, Center for Economic Research.
- Ausubel Lawrence M & Milgrom Paul R, 2002.
"Ascending Auctions with Package Bidding,"
The B.E. Journal of Theoretical Economics,
De Gruyter, vol. 1(1), pages 1-44, August.
- Krishna, V. & Rosenthal, R.W., 1995.
"Simultaneous Auctions with Synergies,"
04-95-06, Pennsylvania State - Department of Economics.
- Veronika Grimm & Frank Riedel & Elmar G. Wolfstetter, 2001.
"The Third Generation (UMTS) Spectrum Auction in Germany,"
CESifo Working Paper Series
584, CESifo Group Munich.
- Grimm, Veronika & Riedel, Frank & Wolfstetter, Elmar, 2001. "The third generation (UMTS) spectrum auction in Germany," SFB 373 Discussion Papers 2001,70, Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes.
- Jeremy Bulow & Jonathan Levin & Paul Milgrom, 2009.
"Winning Play in Spectrum Auctions,"
08-023, Stanford Institute for Economic Policy Research.
When requesting a correction, please mention this item's handle: RePEc:trf:wpaper:394. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Tamilla Benkelberg)
If references are entirely missing, you can add them using this form.