Grimm, Veronika Riedel, Frank Wolfstetter, Elmar G.
Year of Publication:
CESifo Working Paper 506
The second-generation GSM spectrum auction in Germany is probably the most clear cut example of a low price outcome in a simultaneous ascending-bid auction.The present paper gives an account of the events, describes the auction rules and market conditions, and provides a theoretical explanation of low price equilibria in simultaneous, ascending-bid auctions.In particular it is shown that the low price equilibrium that implements the efficient allocation is the unique perfect equilibrium of that game.
Multi-unit auctions spectrum auctions telecomm-unications industrial organization game theory