Skip to main content

Spectrum Auctions

  • Chapter
  • First Online:
Wireless Network Design

Part of the book series: International Series in Operations Research & Management Science ((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.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 129.00
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 169.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 169.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  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. Ausubel, L., Milgrom, P.: Ascending auctions with package bidding. Frontiers of Theoretical Economics 1, 1–45 (2002)

    Article  Google Scholar 

  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. Bichler, M., Shabalin, P., Pikovsky, A.: A computational analysis of linear price iterative combinatorial auctions. Information Systems Research 20, 33–59 (2009)

    Article  Google Scholar 

  5. Bikhchandani, S., Ostroy, J.M.: From the assignment model to combinatorial auctions. In: Combinatorial Auctions. MIT Press, Cambridge, MA (2006)

    Google Scholar 

  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. 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. Brunner, C., Goeree, J., Holt, C., Ledyard, J.: Combinatorial auctioneering. Available at http://econ.arizona.edu/downloads/Seminars/HoltSp07.pdf (2006)

  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. Clark, E.: Multipart pricing of public goods. Public Choice XI, 17–33 (1971)

    Article  Google Scholar 

  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. 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. Cramton, P.: A review of the 10-40 GHz auction. Available at http://www.cramton.umd.edu (2008)

  14. Cramton, P.: A review of the L-Band auction. Available at http://www.cramton.umd.edu (2008)

  15. Cramton, P.: Spectrum auction design. Available at http://www.cramton.umd.edu (2009). Working Paper

  16. Cramton, P., Schwartz, J.: Collusive bidding: Lessons from the FCC spectrum auctions. Journal of Regulatory Economics 17, 229–252 (2000)

    Article  Google Scholar 

  17. Cramton, P., Shoham, Y., Steinberg, R.: Combinatorial Auctions. MIT Press, Cambridge, MA (2006)

    Google Scholar 

  18. Day, R., Milgrom, P.: Core-selecting package auctions. International Journal of Game Theory 36, 393–407 (2008)

    Article  Google Scholar 

  19. Day, R., Raghavan, S.: Assignment preferences and combinatorial auctions. Available at http://users.business.uconn.edu/bday/index.html (2005). Working Paper

  20. Day, R., Raghavan, S.: Fair payments for efficient allocations in public sector combinatorial auctions. Management Science 53, 1389–1406 (2007)

    Article  Google Scholar 

  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. 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. Epstein, R., Henriquez, L., Catalan, J., Weintraub, G.Y., Martinez, C.: A combinatorial auction improves meals in chile. Interfaces 32, 1–14 (2002)

    Article  Google Scholar 

  24. Erdel, A., Klemperer, P.: A new payment rule for core-selecting package auctions. Journal of the European Economic Association (2009)

    Google Scholar 

  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. 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 FCC

    Google Scholar 

  27. Groves, T.: Incentives in teams. Econometrica 61, 617–631 (1973)

    Article  Google Scholar 

  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. 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. 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. 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)

    Article  Google Scholar 

  32. Klemperer, P.: What really matters in auction design. Journal of Economics Perspectives 16, 169–189 (2002)

    Article  Google Scholar 

  33. Klemperer, P.: Auctions: Theory and Practice. Princeton University Press, Princeton, New Jersey (2004)

    Google Scholar 

  34. Klemperer, P.D.: Auctions with almost common values. European Economic Review 42, 757–69 (1998)

    Article  Google Scholar 

  35. Krishna, V.J.: Auction Theory. Academic Press, London (2002)

    Google Scholar 

  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)

    Article  Google Scholar 

  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)

    Article  Google Scholar 

  38. McMillan, J.: Selling auction rights. Journal of Economic Perspectives 8, 145–182 (1994)

    Google Scholar 

  39. McMillan, J.: Reinventing the Bazaar: A Natural History of Markets. W.W. Norton and Company, New York (2002)

    Google Scholar 

  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)

    Article  Google Scholar 

  41. Milgrom, P.: Putting Auction Theory to Work. Cambridge University Press, Cambridge, UK (2004)

    Google Scholar 

  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

    Chapter  Google Scholar 

  43. Parkes, D.C.: iBundle: An efficient ascending price bundle auction. Proc. ACM Conference on Electronic Commerce, pp. 148–157 (1999)

    Google Scholar 

  44. Parkes, D.C.: Auction design with costly preference elicitation. Annals of Mathematics and AI 44, 269–302 (2005)

    Google Scholar 

  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. Porter, D., Smith, V.: FCC auction design: A 12-year experiment. Journal of Law, Economics and Policy 3, 63–80 (2007)

    Google Scholar 

  47. Rothkopf, M.: Thirteen reasons why the vickrey-clarke-groves process in not practical. Operations Research 55, 191–197 (2007)

    Article  Google Scholar 

  48. Steiglitz, K.: Snipers, Shills and Sharks: eBay and Human Behavior. Princeton University Press, Princeton, New Jersey (2007). Page 298.

    Google Scholar 

  49. Vickrey, W.: Counter-speculation, auctions and competitive sealed tenders. Journal of Finance XVI, 8–37 (1961)

    Article  Google Scholar 

  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 Paper

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Karla Hoffman .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2011 Springer New York

About this chapter

Cite this chapter

Hoffman, K. (2011). Spectrum Auctions. In: Kennington, J., Olinick, E., Rajan, D. (eds) Wireless Network Design. International Series in Operations Research & Management Science, vol 158. Springer, New York, NY. https://doi.org/10.1007/978-1-4419-6111-2_7

Download citation

Publish with us

Policies and ethics