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Auctions to implement the efficient market structure

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  • Gebhardt, Georg
  • Wambach, Achim

Abstract

We consider a regulator who does not know how many firms should be granted a license to enter a market as he has limited information on their setup costs. We propose two auction formats which implement the efficient market structure. In a "jumping English auction" the price for a license increases continuously most of the times, but jumps at pre-specified points. After each jump, the number of winning bids is increased by one. The second auction is a multi unit auction based on the design of the UMTS auction in Austria and Germany, where firms can bid on more or less packages.

Suggested Citation

  • Gebhardt, Georg & Wambach, Achim, 2008. "Auctions to implement the efficient market structure," International Journal of Industrial Organization, Elsevier, vol. 26(3), pages 846-859, May.
    • Handle: RePEc:eee:indorg:v:26:y:2008:i:3:p:846-859
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    References listed on IDEAS

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    Cited by:

    1. Stefan Bulowski & Jürgen Kühling & Oliver Zierke, 2022. "Die Ausschreibung als ungeeignetes Verfahren zur Vergabe von Mobilfunkfrequenzen [The Invitation to Tender as an Unsuitable Procedure for Awarding Mobile Radio Frequencies]," Wirtschaftsdienst, Springer;ZBW - Leibniz Information Centre for Economics, vol. 102(9), pages 683-687, September.
    2. Kasberger, Bernhard, 2023. "When can auctions maximize post-auction welfare?," International Journal of Industrial Organization, Elsevier, vol. 89(C).
    3. Yan, Haomin, 2020. "Auctions with quantity externalities and endogenous supply," International Journal of Industrial Organization, Elsevier, vol. 71(C).
    4. Gretschko, Vitali & Wambach, Achim, 2021. "Stellungnahme zu Grundsätzen und Szenarien für die Bereitstellung der Mobilfunkfrequenzen," ZEW Expert Briefs 21-07, ZEW - Leibniz Centre for European Economic Research.

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