Comments about "Spectrum auction" in Wikipedia

This document contains comments about the article Spectrum auction in Wikipedia
In the last paragraph I explain my own opinion.

Contents

Reflection

Introduction

The article starts with the following sentence.

1 Innovation

2 Advantages

3 Countries

3.1 Canada

3.2 Germany

3.3 India

3.4 Ireland

3.5 Pakistan

3.6 Slovakia

3.7 Sweden

3.8 United Kingdom

3.9 United States

Okay
At the start of each round, bidders simultaneously make sealed bids for any licenses in which they are interested. When the bidding for the round has concluded, round results are posted, which include the identities of the new bids and bidders along with the standing high bid and the corresponding bidder.
Okay
The initial standing high bid at the start of an auction is zero ($0) and the corresponding bidder is the auctioneer.
THat means the initial standing high bid is = 0
As the auction progresses, the standing high bid changes to highest new bid and the corresponding bidder is the person who makes said bid. In addition to posting the round results, minimum bids for the next round are also posted. A minimum bid is computed from taking the standard high bid and adding a predetermined bid increment, such as 5% or 10%.[35] &
My understanding is: When in the first round the bids are 1000, 1200 and 1500 than the standing high bid becomes 1500. The minimum bid becomes: 1500 * 1.05 = 1575
The tendency of this scheme is that at each round the prices becomes higher.

3.9.1 History

3.9.2 Auction structure

3.9.2.1 Simultaneous ascending multiple-round auction

After each round closes, round results are processed and made public.
Okay
This provides information about the value of the licenses to all bidders and increases the likelihood that the licenses will be assigned to the bidders who value them the most.
What does that mean? Does that mean to the bidders who want to pay the most?
The period between auction rounds also allows bidders to take stock of, and perhaps adjust, their bidding strategies.
What is in practice a bidding strategy?

3.9.2.2 Anonymous bidding

3.9.2.3 Bidding rounds

A Simultaneous Multiple-Round Auction offers every license for bid at the same time and consists of successive bidding rounds in which qualified bidders may place bids on individual licenses
Okay. This sentence only explain the broad concept but not the details.

3.9.2.4 Stopping rule

3.9.2.5 Auction delay, suspension and cancellation

3.9.2.6 Voluntary surrender of licenses

4. See also

Following is a list with "Comments in Wikipedia" about related subjects
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Reflection 1 - 'Book Review' Competition Regulation and Convergence Current Trends in Telecommunications

This reflection is based on the book indicated as #35 in 3.9 United States To get an image of the book select. https://www.routledge.com/Competition-Regulation-and-Convergence-Current-Trends-in-Telecommunications/Gillett-Vogelsang/p/book/9781138991538
The book is 'important' I expect because it is the only source

Reflection 2 - It is such a Small World: The Market-design Academic Community Evolved in a Business Network

This reflection is based on an article in the paper "ProMarket" of 28 May 2020 by Stefano Feltri https://promarket.org/2020/05/28/it-is-such-a-small-world-the-market-design-academic-community-evolved-in-a-business-network/
The final outcome for taxpayers was disappointing, and private equity firms made profits thanks to the design of the auction and to the help of economists who were colleagues of the auction’s designers, Weyl argued.
Interesting observation.
A technically challenging spectrum auction, celebrated as successful for US taxpayers, happened to also be extremely profitable for private equity firms.
What this means is that the science of auctions can be profitable for others not directly involved in the TV communication business.

To get more information about Peter Cramton select this link:

Reflection 3 - Was the 2017 FCC Spectrum Auction a succes or a disappointing failure

This reflection is based on an article in the paper "ProMarket" of 17 June 2020 by Asher Schechter: https://promarket.org/2020/06/17/was-the-2017-fcc-spectrum-auction-a-success-or-a-disappointing-failure/
THe article is an answer to the previuos article of 28 May 2020

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Created: 16 October 2020

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