Inspired by some spectrum auctions, we consider a stylized license auction with incumbents and one entrant. Whereas the …

estimate the magnitude of license complementarity by modeling the bidding process as an entry game with interdependent markets … ($19 billion) in Auction 73. Complementarity in a 1 MHz nationwide license is worth $918 million to an average large bidder … revenue substantially at the cost of reducing bidder surplus and increasing license allocation concentration …