The determinants of price in 3G spectrum auctions
MetadataShow full item record
This article examined the empirical relationship between prices paid for national 3G wireless licenses when spectrums were sold by auction. The reduced-form modelling approach was based on the premise that auction design features can, and do, affect both final (revenue) and intermediate (viz., auction competitiveness and license assignment) auction outcomes. Importantly, the analysis recognizes, and explicitly allows for, the endogeneity of bidder entry and sample selection arising from an absence of bidding. Generally, these key features have only received attention in isolation. In particular, the study addressed the principal question of: which regulator chosen auction design variables determine prices paid in spectrum auctions? The analysis showed that flexible-package formats increased prices paid, and that higher reserve prices had a dampening effect. The article also showed that longer license terms and more competitive auctions (as measured by the bidders-to-licenses ratio) enhance prices paid.
Showing items related by title, author, creator and subject.
Chow, Chi Ngok (2010)The largest wool exporter in the world is Australia, where wool being a major export is worth over AUD $2 billion per year and constitutes about 17 per cent of all agricultural exports. Most Australian wool is sold by ...
Madden, Gary; Bohlin, E.; Kraipornsak, P.; Tran, Thien (2014)This article examines the prices paid for 700 MHz licenses in recent Federal Communications Commission auctions. Econometric modelling confirms the presence of economies of scale and scope in wireless spectrum valuations. ...
Madden, Gary; Bohlin, E.; Tran, Thien; Morey, A. (2014)Competition policy attempts to address the potential for market failure by encouraging competition in service markets. Often, in wireless communication service markets, national regulatory authorities seek to encourage ...