Tuesday, March 22, 2011
Posted by D. Daniel Sokol
Peter C. Cramton, University of Maryland - Department of Economics, Evan Kwerel, Gregory L. Rosston, Stanford Institute for Economic Policy Research, and Andrzej Skrzypacz, Stanford Graduate School of Business advocate Using Spectrum Auctions to Enhance Competition in Wireless Services.
ABSTRACT: Spectrum auctions are used by governments to assign and price licenses for wireless communications. Effective auction design recognizes the importance of competition, not only in the auction, but in the downstream market for wireless communications. This paper examines several instruments regulators can use to enhance competition and thereby improve market outcomes.