Auctions to implement the efficient market structure
We consider a regulator who does not know how many firms should be granted a license to enter a market as he has limited information on their setup costs. We propose two auction formats which implement the efficient market structure. In a "jumping English auction" the price for a license increases continuously most of the times, but jumps at pre-specified points. After each jump, the number of winning bids is increased by one. The second auction is a multi unit auction based on the design of the UMTS auction in Austria and Germany, where firms can bid on more or less packages.
Year of publication: |
2008
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Authors: | Gebhardt, Georg ; Wambach, Achim |
Published in: |
International Journal of Industrial Organization. - Elsevier, ISSN 0167-7187. - Vol. 26.2008, 3, p. 846-859
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Publisher: |
Elsevier |
Saved in:
Online Resource
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