IDEAS home Printed from https://ideas.repec.org/a/kap/netnom/v22y2021i1d10.1007_s11066-021-09147-x.html
   My bibliography  Save this article

A truthful ascending auction mechanism for dynamic allocation of LSA spectrum blocks

Author

Listed:
  • Ayman Chouayakh

    (Orange Labs)

  • Aurélien Bechler

    (Orange Labs)

  • Isabel Amigo

    (IMT Atlantique)

  • Loutfi Nuaymi

    (IMT Atlantique)

  • Patrick Maillé

    (IMT Atlantique)

Abstract

Licensed Shared Access (LSA) is a new sharing approach that aims to optimize the use of the 2.3-2.4 Ghz frequency band in order to support the deployment of 5G systems. Under LSA, Mobile Network Operators (MNOs) can share the 2.3-2.4 band with the incumbent of that band under some guarantees, specified in a license attributed by the regulator. In this paper, we focus on ascending auctions to allocate and price licenses. We first show how to implement an ascending version of the well-known Vickrey-Clarke-Groves (VCG) mechanism in the LSA context, but highlight that it may introduce some computational complexity problems. We therefore propose another ascending mechanism, called C-LSA, based on the clinching approach. We also design the one-shot equivalent (in terms of allocations and payments) of C- LSA that we use to compare the performance of VCG and C-LSA through simulations. Our simulations suggest that C-LSA is an interesting candidate to allocate LSA licenses, since the mechanism yields considerably larger revenues than VCG, for a very limited loss of allocation efficiency (around 4%).

Suggested Citation

  • Ayman Chouayakh & Aurélien Bechler & Isabel Amigo & Loutfi Nuaymi & Patrick Maillé, 2021. "A truthful ascending auction mechanism for dynamic allocation of LSA spectrum blocks," Netnomics, Springer, vol. 22(1), pages 27-52, June.
    • Handle: RePEc:kap:netnom:v:22:y:2021:i:1:d:10.1007_s11066-021-09147-x
    DOI: 10.1007/s11066-021-09147-x
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11066-021-09147-x
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s11066-021-09147-x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Lawrence M. Ausubel, 2004. "An Efficient Ascending-Bid Auction for Multiple Objects," American Economic Review, American Economic Association, vol. 94(5), pages 1452-1475, December.
    2. Mishra, Debasis & Parkes, David C., 2007. "Ascending price Vickrey auctions for general valuations," Journal of Economic Theory, Elsevier, vol. 132(1), pages 335-366, January.
    3. Edward Clarke, 1971. "Multipart pricing of public goods," Public Choice, Springer, vol. 11(1), pages 17-33, September.
    4. Groves, Theodore, 1973. "Incentives in Teams," Econometrica, Econometric Society, vol. 41(4), pages 617-631, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tomoya Kazumura & Shigehiro Serizawa, 2016. "Efficiency and strategy-proofness in object assignment problems with multi-demand preferences," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 47(3), pages 633-663, October.
    2. Vohra, Rakesh V., 2015. "Combinatorial Auctions," Handbook of Game Theory with Economic Applications,, Elsevier.
    3. Andersson, Tommy & Erlanson, Albin, 2013. "Multi-item Vickrey–English–Dutch auctions," Games and Economic Behavior, Elsevier, vol. 81(C), pages 116-129.
    4. Sushil Bikhchandani & Sven de Vries & James Schummer & Rakesh V. Vohra, 2011. "An Ascending Vickrey Auction for Selling Bases of a Matroid," Operations Research, INFORMS, vol. 59(2), pages 400-413, April.
    5. Mishra, Debasis & Parkes, David C., 2009. "Multi-item Vickrey-Dutch auctions," Games and Economic Behavior, Elsevier, vol. 66(1), pages 326-347, May.
    6. Yan, Haomin, 2021. "Position auctions with multi-unit demands," Games and Economic Behavior, Elsevier, vol. 127(C), pages 179-193.
    7. Xu, Su Xiu & Huang, George Q., 2014. "Efficient auctions for distributed transportation procurement," Transportation Research Part B: Methodological, Elsevier, vol. 65(C), pages 47-64.
    8. Baranov, Oleg, 2018. "An efficient ascending auction for private valuations," Journal of Economic Theory, Elsevier, vol. 177(C), pages 495-517.
    9. Xu, Su Xiu & Cheng, Meng & Huang, George Q., 2015. "Efficient intermodal transportation auctions for B2B e-commerce logistics with transaction costs," Transportation Research Part B: Methodological, Elsevier, vol. 80(C), pages 322-337.
    10. Shrestha, Ratna K., 2017. "Menus of price-quantity contracts for inducing the truth in environmental regulation," Journal of Environmental Economics and Management, Elsevier, vol. 83(C), pages 1-7.
    11. Mishra, Debasis & Parkes, David C., 2007. "Ascending price Vickrey auctions for general valuations," Journal of Economic Theory, Elsevier, vol. 132(1), pages 335-366, January.
    12. Loertscher, Simon & Mezzetti, Claudio, 2021. "A dominant strategy, double clock auction with estimation-based tatonnement," Theoretical Economics, Econometric Society, vol. 16(3), July.
    13. Robert Kleinberg & Bo Waggoner & E. Glen Weyl, 2016. "Descending Price Optimally Coordinates Search," Papers 1603.07682, arXiv.org, revised Dec 2016.
    14. Dütting, Paul & Talgam-Cohen, Inbal & Roughgarden, Tim, 2017. "Modularity and greed in double auctions," LSE Research Online Documents on Economics 83199, London School of Economics and Political Science, LSE Library.
    15. , & ,, 2015. "Strategy-proofness and efficiency with non-quasi-linear preferences: a characterization of minimum price Walrasian rule," Theoretical Economics, Econometric Society, vol. 10(2), May.
    16. Pär Holmberg, 2017. "Pro‐competitive Rationing in Multi‐unit Auctions," Economic Journal, Royal Economic Society, vol. 127(605), pages 372-395, October.
    17. Lawrence M. Ausubel, 2006. "An Efficient Dynamic Auction for Heterogeneous Commodities," American Economic Review, American Economic Association, vol. 96(3), pages 602-629, June.
    18. Mochon, A. & Saez, Y. & Gomez-Barroso, J.L. & Isasi, P., 2012. "Exploring pricing rules in combinatorial sealed-bid auctions," Journal of Economic Behavior & Organization, Elsevier, vol. 82(2), pages 462-478.
    19. M. Yenmez, 2015. "Incentive compatible market design with applications," International Journal of Game Theory, Springer;Game Theory Society, vol. 44(3), pages 543-569, August.
    20. Yuanguang Yu, 2012. "An Optimal Ad Valorem Tax/Subsidy with an Output-Based Refunded Emission Payment for Permits Auction in an Oligopoly Market," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 52(2), pages 235-248, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:netnom:v:22:y:2021:i:1:d:10.1007_s11066-021-09147-x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.