Congratulations to Martin Bichler and Jacob K. Goeree on the launch of their “Handbook of Spectrum Auction Design” (Cambridge University Press). The book features papers of leading experts on all aspects of spectrum auction design, a central application of game theory and auction theory.
Dr Stephan Knapek, Managing Partner, Prof Achim Wambach, founding member of TWS Partners and president of the Centre for European Economic Research (ZEW), and Prof Vitali Gretschko, head of the ZEW research group “Market Design”, contributed the chapter “Bidding Complexities in the Combinatorial Clock Auction”.
The Combinatorial Clock Auction (CCA) is an innovative auction design that has been used in many recent telecommunication spectrum auctions. While the design is quite complex, the promise of the CCA is that bidding is simple. However, the authors demonstrate that truthful bidding is not a dominant strategy and can significantly hurt bidders. Bidders face complex strategic decisions and need to consider their competitors’ bidding behaviour.
Stephan Knapek summarises: “This is a wonderful book and a great resource for everyone in the field, also for practitioners. In our article, we highlight the complexities when bidding in a Combinatorial Clock Auction. Especially for bidders this might be of help.”
Full summary and article: https://doi.org/10.1017/9781316471609.034