Abbink, Klaus Irlenbusch, Bernd Pezanis-Christou, Paul Rockenbach, Bettina Sadrieh, Abdolkarim Selten, Reinhard
Year of Publication:
Bonn Econ Discussion Papers 25/2001
In spring 2000, the British government auctioned off licences for Third Generation mobile telecommunications services. In the preparation of the auction, two designs involving each a hybrid of an English and a sealed-bid auction were suggested by the government: a discriminatory and a uniform price variant. We report an experiment on these two designs, and also compare the results to those with a pure English auction. Both hybrids are similar in efficiency, revenue differences disappear as bidders get experienced. Compared to the discriminatory format, the pure English auction gives new entrants better chances.