Reasonable principles as guidance to spectrum auction design © Photo Credit: lassedesignen - stock.adobe.com

Reasonable principles as guidance to spectrum auction design

Spectrum auctions should be designed as an efficient bargaining mechanism which fulfils the principles of the Coase Theorem.

Spectrum auctions should be designed as an efficient bargaining mechanism. The Coase Theorem provides requirements which have to be fulfilled. The transparent traditional simultaneous multiple round auction as always used in Germany is in line with all reasonable principles. The combinatorial clock-auction which was for example applied in Austria fails to fulfil several of these principles.

The study (in German language) is available for download.