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Putting Auction Theory to Work: The Simultaneous Ascending Auction

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  • Paul Milgrom

Abstract

December 8, 1997 (Revised April 21, 1999) We review the uses of economic theory in the initial design and later improvement of the "simultaneous ascending auction," which was developed initially for the sale of radio spectrum licenses in the US, with efficiency of the final allocation as the statutory goal. We analyze some capabilities and inherent limitations of the auction, the roles of various detailed rules, the possibilities for introducing combinatorial bidding, and some considerations in adapting the auction for sales with a revenue goal.

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  • Paul Milgrom, "undated". "Putting Auction Theory to Work: The Simultaneous Ascending Auction," Working Papers 98002, Stanford University, Department of Economics.
    • Handle: RePEc:wop:stanec:98002
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    1. Paul R. Milgrom, 1985. "Auction Theory," Cowles Foundation Discussion Papers 779, Cowles Foundation for Research in Economics, Yale University.
    2. Lawrence M. Ausubel & Peter Cramton & Marek Pycia & Marzena Rostek & Marek Weretka, 2014. "Demand Reduction and Inefficiency in Multi-Unit Auctions," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 81(4), pages 1366-1400.
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