The determinants of price in 3G spectrum auctions
This article examined the empirical relationship between prices paid for national 3G wireless licenses when spectrums were sold by auction. The reduced-form modelling approach was based on the premise that auction design features can, and do, affect both final (revenue) and intermediate (viz., aucti...
| Main Authors: | , |
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| Format: | Journal Article |
| Published: |
Routledge
2016
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| Online Access: | http://hdl.handle.net/20.500.11937/9211 |
| _version_ | 1848745884411494400 |
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| author | Madden, Gary Suenaga, Hiroaki |
| author_facet | Madden, Gary Suenaga, Hiroaki |
| author_sort | Madden, Gary |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | This article examined the empirical relationship between prices paid for national 3G wireless licenses when spectrums were sold by auction. The reduced-form modelling approach was based on the premise that auction design features can, and do, affect both final (revenue) and intermediate (viz., auction competitiveness and license assignment) auction outcomes. Importantly, the analysis recognizes, and explicitly allows for, the endogeneity of bidder entry and sample selection arising from an absence of bidding. Generally, these key features have only received attention in isolation. In particular, the study addressed the principal question of: which regulator chosen auction design variables determine prices paid in spectrum auctions? The analysis showed that flexible-package formats increased prices paid, and that higher reserve prices had a dampening effect. The article also showed that longer license terms and more competitive auctions (as measured by the bidders-to-licenses ratio) enhance prices paid. |
| first_indexed | 2025-11-14T06:24:27Z |
| format | Journal Article |
| id | curtin-20.500.11937-9211 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T06:24:27Z |
| publishDate | 2016 |
| publisher | Routledge |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-92112017-09-13T15:37:42Z The determinants of price in 3G spectrum auctions Madden, Gary Suenaga, Hiroaki This article examined the empirical relationship between prices paid for national 3G wireless licenses when spectrums were sold by auction. The reduced-form modelling approach was based on the premise that auction design features can, and do, affect both final (revenue) and intermediate (viz., auction competitiveness and license assignment) auction outcomes. Importantly, the analysis recognizes, and explicitly allows for, the endogeneity of bidder entry and sample selection arising from an absence of bidding. Generally, these key features have only received attention in isolation. In particular, the study addressed the principal question of: which regulator chosen auction design variables determine prices paid in spectrum auctions? The analysis showed that flexible-package formats increased prices paid, and that higher reserve prices had a dampening effect. The article also showed that longer license terms and more competitive auctions (as measured by the bidders-to-licenses ratio) enhance prices paid. 2016 Journal Article http://hdl.handle.net/20.500.11937/9211 10.1080/00036846.2016.1254342 Routledge restricted |
| spellingShingle | Madden, Gary Suenaga, Hiroaki The determinants of price in 3G spectrum auctions |
| title | The determinants of price in 3G spectrum auctions |
| title_full | The determinants of price in 3G spectrum auctions |
| title_fullStr | The determinants of price in 3G spectrum auctions |
| title_full_unstemmed | The determinants of price in 3G spectrum auctions |
| title_short | The determinants of price in 3G spectrum auctions |
| title_sort | determinants of price in 3g spectrum auctions |
| url | http://hdl.handle.net/20.500.11937/9211 |