The Third Generation (Umts) Spectrum Auction in Germany
23 Pages Posted: 13 Nov 2001
Date Written: October 2001
The third generation UMTS auction in Germany raised an enormous amount of revenue, and at the same time achieved a more competitive market structure than other UMTS auctions in Europe. The present paper explains the design of that auction, and presents a game theoretic explanation of observed events during the crucial phase of that auction, which have puzzled several observers. In addition, the paper evaluates the merit of the German UMTS auction design, relative to the English design, that was predominantly employed in Europe.
Keywords: Auctions, Telecommunications, Industrial Organization, Game Theory
JEL Classification: D43, D44, D45, H20, L13
Suggested Citation: Suggested Citation