Berg, Vincent A.C. van den - Tinbergen Instituut - 2013
. With a "standard auction", this "existing operator" bids above the auctioned facility's expected profit, as winning means … being a monopolist instead of a duopolist. This auction leads to an unregulated outcome which hurts welfare. A consumer …-price auction can alleviate this problem. With complementing facilities, the existing operator offers a price below marginal cost …