EconPapers    
Economics at your fingertips  
 

License Auctions and Market Structure

Hendrik Hakenes () and Isabel Schnabel ()
Additional contact information
Hendrik Hakenes: Sonderforschungsbereich 504, Postal: L 13, 15-17, D-68131 Mannheim
Isabel Schnabel: Sonderforschungsbereich 504, Postal: L 13, 15-17, D-68131 Mannheim

Authors registered in the RePEc Author Service: Philippe Jehiel () and Benny Moldovanu ()

No 01-21, Sonderforschungsbereich 504 Publications from Sonderforschungsbereich 504, Universität Mannheim, Sonderforschungsbereich 504, University of Mannheim

Abstract: We analyze the interplay between license auctions and market structure in a model with several incumbents and several potential entrants. The focus is on the competitiveness induced by the number of auctioned licenses. Moreover, we study how the auction format affects the incentives for explicit or tacit collusion among incumbents. A crucial role is played by the relation between the number of incumbents and the number of licenses. If the number of incumbents is greater than the number of new licenses, we show that auctioning more licenses need not result in greater competitiveness. If the number of licenses exceeds the number of incumbents, we display plausible conditions under which all incumbents get a license. Finally, we suggest a positive role for some auction formats in which the number of licenses is endogenously determined at the auction. We illustrate some results with examples drawn from European license auctions for 3G mobile telephony.

Pages: 30 pages
Date: 2000-09-19
New Economics Papers: this item is included in nep-gth
Note: We are grateful for many helpful comments made by the participants at the conference ”Auctions and Market Structure” ,organized by the University of Mannheim, July 2000. Jehiel: ENPC, CERAS, 28 rue des Saints-Peres, 75007 Paris and UCL, London; je-hiel@enpc.fr; Moldovanu: Department of Economics, University of Mannheim, 68131 Mannheim; mold@pool.uni-mannheim.de
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (22)

Downloads: (external link)
http://www.sfb504.uni-mannheim.de/publications/dp01-21.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to www.sfb504.uni-mannheim.de:80 (No such host is known. )

Related works:
Journal Article: License Auctions and Market Structure (2006) Downloads
Working Paper: License auctions and market structure (2006)
Working Paper: License Auctions and Market Structure (2000) Downloads
Working Paper: License Auctions and Market Structure (2000) Downloads
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:xrs:sfbmaa:01-21

Ordering information: This working paper can be ordered from

Access Statistics for this paper

More papers in Sonderforschungsbereich 504 Publications from Sonderforschungsbereich 504, Universität Mannheim Contact information at EDIRC., Sonderforschungsbereich 504, University of Mannheim
Bibliographic data for series maintained by Carsten Schmidt ( this e-mail address is bad, please contact ).

 
Page updated 2025-03-30
Handle: RePEc:xrs:sfbmaa:01-21