EconPapers    
Economics at your fingertips  
 

Deficit Reduction Through Diversity: How Affirmative Action at the FCC Increased Auction Competition

Ian Ayres () and Peter Cramton ()

Papers of Peter Cramton from University of Maryland, Department of Economics - Peter Cramton

Abstract: In recent auctions for paging licenses, the Federal Communications Commission has granted businesses owned by minorities and women substantial bidding credits. In this article, Professors Ayres and Cramton analyze a particular auction and argue that the affirmative action bidding preferences, by increasing competition among auction participants, increased the government's revenue by $45 million. Subsidizing the participation of new bidders can induce established bidders to bid more aggressively. The authors conclude that this revenue- enhancing effect does not provide a sufficient constitutional justification for affirmative action-but when such justification is independently present, affirmative actions can cost the government much less than is currently thought.

Keywords: Auctions; Affirmative Action (search for similar items in EconPapers)
JEL-codes: D44 H20 H53 L96 (search for similar items in EconPapers)
Pages: 55 pages
Date: 1996, Revised 1998-06-09
References: Add references at CitEc
Citations: View citations in EconPapers (31) Track citations by RSS feed

Published in Stanford Law Review, 48:4, April 1996, pages 761-815.

Downloads: (external link)
http://www.cramton.umd.edu/papers1995-1999/96slr-d ... hrough-diversity.pdf Full text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pcc:pccumd:96slr

Access Statistics for this paper

More papers in Papers of Peter Cramton from University of Maryland, Department of Economics - Peter Cramton Economics Department, University of Maryland, College Park, MD 20742-7211.
Bibliographic data for series maintained by Peter Cramton ().

 
Page updated 2020-01-18
Handle: RePEc:pcc:pccumd:96slr