This paper considers a government auctioning off multiple licenses to firms who compete in a market after the auction. Firms have different costs, and cost efficiency is private information at the auction stage and the market competition stage. If only one license is auctioned, standard results...

Where markets are insufficiently competitive, governments can intervene by auctioning licenses to operate or by forcing divestitures. The Dutch government has done exactly that, organizing auctions to redistribute tenancy rights for high- way gasoline stations and forcing the divestiture of...

This discussion paper led to a publication in <A href="http://onlinelibrary.wiley.com/doi/10.1111/j.1468-0297.2009.02334.x/abstract">'The Economic Journal'</A>, 120(549) 1319-44.<P>This paper considers a government auctioning off multiple licenses to firms who compete in a market after the auction. Firms have different costs, and cost efficiency is private information at the auction...</p></a>

This discussion paper resulted in an article in the 'Journal of Industrial Economics' (2014). Volume 62, issue 3, pages 467-502.<P> Where markets are insufficiently competitive, governments can intervene by auctioninglicenses to operate or by forcing divestitures. The Dutch government has...</p>