Advertisement

Spectrum Auctions

  • Karla Hoffman
Chapter
Part of the International Series in Operations Research & Management Science book series (ISOR, volume 158)

Abstract

Most developed countries allocate radio spectrum by auction. The Simultaneous Ascending Auction (SAA) has proven to work well for this application. Recently, new designs that allow package bidding have been proposed. These designs have only been tried in the past few years. We first provide some historical background regarding the allocation of spectrum, describe the use of the SAA design and its modifications over the past 15 years, and then highlight the new advances in combinatorial auction designs and their use for the allocation of spectrum.

Keywords

Federal Communication Commission Combinatorial Auction Auction Mechanism Winning Bidder Clock Phase 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. 1.
    Ausubel, L., Cramton, P., Milgrom, P.: The clock-proxy auction: A practical combinatorial auction design. In: P. Cramton, Y. Shoham, R. Steinberg (eds.) Combinatorial Auctions, pp. 115–118. MIT Press, Cambridge, MA (2006)Google Scholar
  2. 2.
    Ausubel, L., Milgrom, P.: Ascending auctions with package bidding. Frontiers of Theoretical Economics 1, 1–45 (2002)CrossRefGoogle Scholar
  3. 3.
    Ausubel, L., Milgrom, P.: The lovely but lonely vickrey auction. In: P. Cramton, Y. Shoham, R. Steinberg (eds.) Combinatorial Auctions, pp. 1–40. MIT Press, Cambridge, MA (2006)Google Scholar
  4. 4.
    Bichler, M., Shabalin, P., Pikovsky, A.: A computational analysis of linear price iterative combinatorial auctions. Information Systems Research 20, 33–59 (2009)CrossRefGoogle Scholar
  5. 5.
    Bikhchandani, S., Ostroy, J.M.: From the assignment model to combinatorial auctions. In: Combinatorial Auctions. MIT Press, Cambridge, MA (2006)Google Scholar
  6. 6.
    Boutilier, C., Hoos, H.H.: Bidding languages for combinatorial auctions. In: Seventh International Joint Conference on Artificial Intelligence, vol. 17, pp. 1211–1217 (2001)Google Scholar
  7. 7.
    Boutilier, C., Sandholm, T., Shields, R.: Eliciting bid taker non-price preferences in combinatorial auctions. Proceedings of the National Conference on Artificial Intelligence, pp. 204–211. San Jose, CA (2004)Google Scholar
  8. 8.
    Brunner, C., Goeree, J., Holt, C., Ledyard, J.: Combinatorial auctioneering. Available at http://econ.arizona.edu/downloads/Seminars/HoltSp07.pdf (2006)
  9. 9.
    Cantillon, E., Pesendorfer, M.: Combination bidding in multiple unit auctions. Tech. Rep. 76, Harvard Business School (2001). Available at http://www.ecares.org/ecare/personal/cantillon/web/combination-bidding.pdf
  10. 10.
    Clark, E.: Multipart pricing of public goods. Public Choice XI, 17–33 (1971)CrossRefGoogle Scholar
  11. 11.
    Cramton, P.: Spectrum auctions. In: M. Cave, S. Majumdar, I. Vogelsang (eds.) Handbook of Telecommunications Economics, pp. 605–639. Elsevier Science, Amsterdam, NL (2002)Google Scholar
  12. 12.
    Cramton, P.: Money out of thin air: The nationwide narrowband PCS auction. Journal of Economics and Management Strategy 4, 267–343 (2006)Google Scholar
  13. 13.
    Cramton, P.: A review of the 10-40 GHz auction. Available at http://www.cramton.umd.edu (2008)
  14. 14.
    Cramton, P.: A review of the L-Band auction. Available at http://www.cramton.umd.edu (2008)
  15. 15.
    Cramton, P.: Spectrum auction design. Available at http://www.cramton.umd.edu (2009). Working Paper
  16. 16.
    Cramton, P., Schwartz, J.: Collusive bidding: Lessons from the FCC spectrum auctions. Journal of Regulatory Economics 17, 229–252 (2000)CrossRefGoogle Scholar
  17. 17.
    Cramton, P., Shoham, Y., Steinberg, R.: Combinatorial Auctions. MIT Press, Cambridge, MA (2006)Google Scholar
  18. 18.
    Day, R., Milgrom, P.: Core-selecting package auctions. International Journal of Game Theory 36, 393–407 (2008)CrossRefGoogle Scholar
  19. 19.
    Day, R., Raghavan, S.: Assignment preferences and combinatorial auctions. Available at http://users.business.uconn.edu/bday/index.html (2005). Working Paper
  20. 20.
    Day, R., Raghavan, S.: Fair payments for efficient allocations in public sector combinatorial auctions. Management Science 53, 1389–1406 (2007)CrossRefGoogle Scholar
  21. 21.
    Dunford, M., Hoffman, K., Menon, D., Sultana, R., Wilson, T.: Ascending combinatorial auctions. Tech. rep., Systems Engineering and Operations Research Department, George Mason University (2008)Google Scholar
  22. 22.
    Elmaghraby, W., Keskinocak, P.: Combinatorial auctions in procurement. In: T.P. Harrison, H.L. Lee, J.J. Neale (eds.) The Practice of Supply Chain Management: Where Theory and Application Converge, International Series In Operations Research and Management, vol. 62, pp. 245–258. Springer US, New York (2004)Google Scholar
  23. 23.
    Epstein, R., Henriquez, L., Catalan, J., Weintraub, G.Y., Martinez, C.: A combinatorial auction improves meals in chile. Interfaces 32, 1–14 (2002)CrossRefGoogle Scholar
  24. 24.
    Erdel, A., Klemperer, P.: A new payment rule for core-selecting package auctions. Journal of the European Economic Association (2009)Google Scholar
  25. 25.
    Fujishima, Y., Leyton-Brown, K., Shoham, Y.: Taming the complexity of combinatorial auctions: Optimal and approximate approaches. Proceedings of IJCAI, pp. 548–553 (1999)Google Scholar
  26. 26.
    Goeree, J.K., Holt, C.A., Ledyard, J.O.: An experimental comparison of the FCC’s combinatorial and non-combinatorial simultaneous multiple round auctions. Tech. rep., Economics Department, The University of Virginia (2006). Prepared for the Wireless Telecommunications Bureau of the FCCGoogle Scholar
  27. 27.
    Groves, T.: Incentives in teams. Econometrica 61, 617–631 (1973)CrossRefGoogle Scholar
  28. 28.
    Hoffman, K., Menon, D., van den Heever, S.A.: A package bidding tool for the FCC’s spectrum auctions, and its effect on auction outcomes. Telecommunications Modeling, Policy, and Technology 44, 153–189 (2008)Google Scholar
  29. 29.
    Hoffman, K., Menon, D., van den Heever, S.A., Wilson, T.: Observations and near-direct implementations of the ascending proxy auction. In: P. Cramton, Y. Shoham, R. Steinberg (eds.) Combinatorial Auctions, pp. 415–450. MIT Press, Cambridge, MA (2005)Google Scholar
  30. 30.
    Hohner, G., Rich, J., Ng, E., Reed, G., Davenport, A., Kolagnanam, J., Lee, H.S., An, C.: Combinatorial and quantity discount auctions with mutual benefits at mars, incorporated. Interfaces 31, 23–35 (2002)Google Scholar
  31. 31.
    Kaglannas, A., Askounis, D., Psarras, J.: Power generation planning: A survey from monopoly to competition. International Journal of Electrical Power and Energy Systems 26, 413–421 (2004)CrossRefGoogle Scholar
  32. 32.
    Klemperer, P.: What really matters in auction design. Journal of Economics Perspectives 16, 169–189 (2002)CrossRefGoogle Scholar
  33. 33.
    Klemperer, P.: Auctions: Theory and Practice. Princeton University Press, Princeton, New Jersey (2004)Google Scholar
  34. 34.
    Klemperer, P.D.: Auctions with almost common values. European Economic Review 42, 757–69 (1998)CrossRefGoogle Scholar
  35. 35.
    Krishna, V.J.: Auction Theory. Academic Press, London (2002)Google Scholar
  36. 36.
    Kwasnica, A.M., Ledyard, J.O., Porter, D., DeMartini, C.: A new and improved design for multi-object iterative auctions. Management Science 51, 419–434 (2005)CrossRefGoogle Scholar
  37. 37.
    Ledyard John, O., Olson, M., Porter, D., Swanson, J.A., Torma, D.P.: The first use of a combined-value auction for transportation services. Interfaces 32, 4–12 (2002)CrossRefGoogle Scholar
  38. 38.
    McMillan, J.: Selling auction rights. Journal of Economic Perspectives 8, 145–182 (1994)Google Scholar
  39. 39.
    McMillan, J.: Reinventing the Bazaar: A Natural History of Markets. W.W. Norton and Company, New York (2002)Google Scholar
  40. 40.
    Metty, T., Harlan, R., Samelson, Q., Moore, T., Morris, T., Sorensen, R., Schneur, A., Raskina, O., Schneur, R., Kanner, J., Potts, K., Robbins, J.: Reinventing the supplier negotiation process at motorola. Interfaces 35, 7–23 (2005)CrossRefGoogle Scholar
  41. 41.
    Milgrom, P.: Putting Auction Theory to Work. Cambridge University Press, Cambridge, UK (2004)Google Scholar
  42. 42.
    Nisan, N.: Bidding and allocation in combinatorial auctions. In: EC’00: Proceedings of the 2nd ACM conference on Electronic commerce, pp. 1–12. ACM, New York, NY, USA (2000). DOI http://doi.acm.org/10.1145/352871.352872 CrossRefGoogle Scholar
  43. 43.
    Parkes, D.C.: iBundle: An efficient ascending price bundle auction. Proc. ACM Conference on Electronic Commerce, pp. 148–157 (1999)Google Scholar
  44. 44.
    Parkes, D.C.: Auction design with costly preference elicitation. Annals of Mathematics and AI 44, 269–302 (2005)Google Scholar
  45. 45.
    Porter, D., Rassenti, S., Roopnarine, A., Smith, V.: Combinatorial auction design. In: Proceedings of the National Academy of Sciences, vol. 100, pp. 11,153–11,157 (2003)Google Scholar
  46. 46.
    Porter, D., Smith, V.: FCC auction design: A 12-year experiment. Journal of Law, Economics and Policy 3, 63–80 (2007)Google Scholar
  47. 47.
    Rothkopf, M.: Thirteen reasons why the vickrey-clarke-groves process in not practical. Operations Research 55, 191–197 (2007)CrossRefGoogle Scholar
  48. 48.
    Steiglitz, K.: Snipers, Shills and Sharks: eBay and Human Behavior. Princeton University Press, Princeton, New Jersey (2007). Page 298.Google Scholar
  49. 49.
    Vickrey, W.: Counter-speculation, auctions and competitive sealed tenders. Journal of Finance XVI, 8–37 (1961)CrossRefGoogle Scholar
  50. 50.
    Wilkie, S.: Spectrum auctions are not a panacea: Theory and evidence of anti-competitive and rent-seeking behavior in FCC rulemakings and auction design (2007). Working PaperGoogle Scholar

Copyright information

© Springer New York 2011

Authors and Affiliations

  1. 1.Systems Engineering and Operations Research DepartmentGeorge Mason UniversityFairfaxUSA

Personalised recommendations