Abstract
From July 1994 to July 1996, the Federal Communications Commission
(FCC) conducted nine spectrum auctions, raising about \$20 billion
for the U.S. Treasury. The auctions assigned thousands of licenses
to hundreds of firms. Were the auctions efficient? Did they award
the licenses to the firms best able to turn the spectrum into valuable
services for consumers? There is substantial evidence that the FCC's
simultaneous ascending auction worked well. It raised large revenues.
It revealed critical information in the process of bidding and gave
bidders the flexibility to adjust strategies in response to new information.
As a result, similar licenses sold for similar prices, and bidders
were able to piece together sensible sets of licenses.
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