Selling Spectrum Rights
Date Submitted: 09/09/2006 23:39:40
The article, "Selling Spectrum Rights", John Macmillan stated that the government had many aims which complicated auction design, including the prevention of monopolization, promotion of more minority firms in the game, achieving efficiency, as well as generating revenues for government. Although for example, Europe governments made a lot of money on the 3G licenses and allowed countries that were formally out of the loop to become part of modern society, the Europe telecoms used it
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found to use in the auctions, because the sell items are more worth together than separately. Although the combination bids can reduce the bidding competition and revelation, the FCC decided against them. Why? They may affect efficiency and cost. Those bids on the bundles may cost less than the sum of the separated licenses. This would bring down the revenues. Also, the bidders with the highest bids will not get their licenses in the auction.
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