UMTS-Auction

Should it be a revenue maximizing auction For a private entity perhaps, but for a public one, not. In the case of the UMTS-auction, the government was primarily concerned with efficiency. That is, does the auction allocate the licences to the ones that will make the most efficient use of them. There is also the subsequent competition to provide communication services amongst the winners to be considered as well. To provide sufficient competition, the government must ensure enough winners at the auction. 

Philippe Jehiel and Benny Moldovanu. A critique of the planned rules for the German UMTS/IMT-2000 license auction. Manuscript, March 2000. 

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