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On the Clock of the Combinatorial Clock Auction

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Abstract

The Combinatorial Clock Auction (CCA) has been frequently used in recent spectrum auctions. It combines a dynamic clockphase with subsequent VCG pricing in order to maximize price discovery and efficiency. We inquire into the role of the clock when bidders have lexicographic preferences for raising rivals' costs. All equilibria of the CCA are inefficient if there is substantial room for price discovery, that is, if there is large uncertainty concerning the competitor's type. Conversely, in all efficient equilibria price discovery is limited. Qualitative features of our equilibria are in line with evidence concerning bidding behavior in some recent CCAs.

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  • Maarten Janssen & Bernhard Kasberger, 2016. "On the Clock of the Combinatorial Clock Auction," Vienna Economics Papers vie1607, University of Vienna, Department of Economics.
    • Handle: RePEc:vie:viennp:vie1607
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    Cited by:

    1. Ignacio Palacios-Huerta & David C. Parkes & Richard Steinberg, 2024. "Combinatorial Auctions in Practice," Journal of Economic Literature, American Economic Association, vol. 62(2), pages 517-553, June.
    2. Kasberger, Bernhard, 2023. "When can auctions maximize post-auction welfare?," International Journal of Industrial Organization, Elsevier, vol. 89(C).
    3. Bernhard Kasberger & Alexander Teytelboym, 2022. "The Combinatorial Multi-Round Ascending Auction," Papers 2203.11783, arXiv.org, revised Feb 2024.

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    More about this item

    JEL classification:

    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • D47 - Microeconomics - - Market Structure, Pricing, and Design - - - Market Design
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

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