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Properties of the Combinatorial Clock Auction

Jonathan Levin, Andrzej Skrzypacz

American Economic Review · 2016 · Volume 106 · Issue 9

DOI: 10.1257/aer.20141212

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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