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Tendering and Bidding for Access: A Regulator's Guide to Auctions

Author

Listed:
  • Flavio M. Menezes

    (School of Economics, Australian National University, ACT 0200.)

  • Rohan Pitchford

    (Asian Pacific School of Economics and Management, Australian National University, ACT 0200.)

  • Andrew Wait

    (Economics, University of Sydney, NSW 2006.)

Abstract

Tenders and traditional auctions are increasingly being used in regulation; as a consequence it is essential regulators have an understanding of the basics of auction theory. There is no simple prescription for the design of an auction or tender that will fit all situations; moreover, the costs from inappropriate auction and tender design can be high For example, while a second-price sealed bid auction is efficient in the absence of collusion, if participants can collude then such auction formats can result in very low revenue. Low revenue can also result with a second-price auction when there are few bidders and no reserve price.

Suggested Citation

  • Flavio M. Menezes & Rohan Pitchford & Andrew Wait, 2003. "Tendering and Bidding for Access: A Regulator's Guide to Auctions," Australian Journal of Management, Australian School of Business, vol. 28(3), pages 345-370, December.
    • Handle: RePEc:sae:ausman:v:28:y:2003:i:3:p:345-370
    DOI: 10.1177/031289620302800307
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    References listed on IDEAS

    as
    1. Dewatripont,Mathias & Hansen,Lars Peter & Turnovsky,Stephen J. (ed.), 2003. "Advances in Economics and Econometrics," Cambridge Books, Cambridge University Press, number 9780521818728, November.
    2. Dewatripont,Mathias & Hansen,Lars Peter & Turnovsky,Stephen J. (ed.), 2003. "Advances in Economics and Econometrics," Cambridge Books, Cambridge University Press, number 9780521524131, November.
    3. Dewatripont,Mathias & Hansen,Lars Peter & Turnovsky,Stephen J. (ed.), 2003. "Advances in Economics and Econometrics," Cambridge Books, Cambridge University Press, number 9780521818742, November.
    4. Dewatripont,Mathias & Hansen,Lars Peter & Turnovsky,Stephen J. (ed.), 2003. "Advances in Economics and Econometrics," Cambridge Books, Cambridge University Press, number 9780521524117, January.
    5. Jean-Jacques Laffont & Jean Tirole, 1993. "A Theory of Incentives in Procurement and Regulation," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262121743, December.
    6. Dewatripont,Mathias & Hansen,Lars Peter & Turnovsky,Stephen J. (ed.), 2003. "Advances in Economics and Econometrics," Cambridge Books, Cambridge University Press, number 9780521818735, November.
    7. Dewatripont,Mathias & Hansen,Lars Peter & Turnovsky,Stephen J. (ed.), 2003. "Advances in Economics and Econometrics," Cambridge Books, Cambridge University Press, number 9780521524124, November.
    8. John McMillan, 1994. "Selling Spectrum Rights," Journal of Economic Perspectives, American Economic Association, vol. 8(3), pages 145-162, Summer.
    9. Mathias Dewatripont & Lars Peter Hansen & Stephen Turnovsky, 2003. "Advances in economics and econometrics :theory and applications," ULB Institutional Repository 2013/9557, ULB -- Universite Libre de Bruxelles.
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    Cited by:

    1. Windsor, Carolyn & Warming-Rasmussen, Bent, 2009. "The rise of regulatory capitalism and the decline of auditor independence: A critical and experimental examination of auditors’ conflicts of interests," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 20(2), pages 267-288.

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    Keywords

    TENDERS; AUCTIONS; REGULATION;
    All these keywords.

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