The Biggest Auction Ever: The Sale of the British 3g Telecom Licences

Posted: 11 Feb 2002

See all articles by Paul Klemperer

Paul Klemperer

University of Oxford - Department of Economics; Centre for Economic Policy Research (CEPR)

Kenneth Binmore

University College London - Department of Economics

Multiple version iconThere are 2 versions of this paper

Abstract

This paper reviews the part played by economists in organizing the British third-generation mobile-phone licence auction that concluded on 27 April 2000. It raised $22.5 billion ($34 billion or 2.5% of GNP) and was widely described at the time as the biggest auction ever.

We discuss the merits of auctions versus "beauty contests", the aims of the auction, the problems we faced, the auction designs we considered, and the mistakes that were made.

Keywords: Auctions, Telecommunications, SpectrumAuctions, Mobile Phones, 3G, MTS, Bidding

JEL Classification: D44, L96

Suggested Citation

Klemperer, Paul and Binmore, Kenneth, The Biggest Auction Ever: The Sale of the British 3g Telecom Licences. Economic Journal, 2002, Forthcoming. Available at SSRN: https://ssrn.com/abstract=299669

Paul Klemperer (Contact Author)

University of Oxford - Department of Economics ( email )

Manor Road Building
Manor Road
Oxford, OX1 3BJ
United Kingdom
+44 1865 278 588 (Phone)
+44 1865 278 557 (Fax)

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

Kenneth Binmore

University College London - Department of Economics ( email )

Gower Street
London WC1E 6BT, WC1E 6BT
United Kingdom
+44 20 7380 7804 (Phone)

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