Properties of the Combinatorial Clock Auction
Jonathan Levin, Andrzej Skrzypacz
American Economic Review · 2016 · Volume 106 · Issue 9
Abstract
The combinatorial clock auction has become popular for large-scale spectrum awards and other uses, replacing more traditional ascending or clock auctions. We describe some surprising properties of the auction, including a wide range of ex post equilibria with demand expansion, demand reduction, and predation. Our results obtain in a standard homogeneous good setting where bidders have well-behaved linear demand curves, and suggest some practical difficulties with dynamic implementations of the Vickrey auction.
Keywords
Auctions, Market Design, Governmental Property, Oligopoly and Other Imperfect Markets
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