Low Price Equilibrium in Multi-Unit Auctions: The Gsm Spectrum Auction in Germany
20 Pages Posted: 1 Aug 2001
Date Written: June 2001
The second-generation GSM spectrum auction in Germany is probably the most clear cut example of a low price outcome in a simultaneous ascending-bid auction. The present paper gives an account of the events, describes the auction rules and market conditions, and provides a theoretical explanation of low price equilibria in simultaneous, ascending-bid auctions. In particular it is shown that the low price equilibrium that implements the efficient allocation is the unique perfect equilibrium of that game.
Keywords: Multi-Unit Auctions, Spectrum Auctions, Telecommunications, Industrial Organization, Game Theory
JEL Classification: D44, D45
Suggested Citation: Suggested Citation