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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. 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.
    3. Kasberger, Bernhard, 2023. "When can auctions maximize post-auction welfare?," International Journal of Industrial Organization, Elsevier, vol. 89(C).
    4. Yan, Haomin, 2020. "Auctions with quantity externalities and endogenous supply," International Journal of Industrial Organization, Elsevier, vol. 71(C).

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