This program implements a series of multi-round auctions in which
bidders are given roles as companies who seek to purchase broadcast
licenses from a government agency. The licenses pertain to different
geographic regions, and each license is for use in a specified "band"
of the spectrum of broadcast frequencies.
The multi-round auctions continue until no new bids are
submitted or until the auctioneer stops the auction. The "provisionally
winning" bids are announced after each round, and these determine
the minimum bids (which serve as prices) that must be submitted in the subsequent
round to stay active in the auction. Activity rules, with a "use it or lose
it" property, force bidders to continue bidding or reduce the number
of licenses that they can bid for in future rounds. The setup options are
not intended to be precise replicas of auction formats that have been used
or considered by specific government agencies in the US or in other countries.
| || || || || ||The standard Simultaneous Multi-Round Auction (SMR) can be modified by allowing
bids on packages with a hierarchical structure,
e.g. a national license or non-overlapping packages of regional licneses.
The resulting Hierarchical Package Bidding Auction (HPB) and associated
pricing rules are explained and tested in Goeree and Holt: "Hierarchical Package
Bidding: A Simple Paper&Pencil Combinatorial Auction," Games and Economic Behavior, 2010.
Vecon Lab - July 17, 2019