Research Post

Incentive Auction Design Alternatives: A Simulation Study

Over 13 months in 2016–17 the US Federal Communications Commission (FCC) conducted an “incentive auction” to repurpose radio spectrum from broadcast television to wireless internet. This paper revisits from a computational perspective the descending clock “reverse” auction used to procure broadcast rights. We investigate the quantitative significance of various aspects of the design by running extensive simulations, leveraging a reverse auction simulator and realistic models of bidder values.

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