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NERA Managing Director Richard Marsden and Associate Director Dr. Soren Tang Sorensen authored a chapter in the book, Handbook of Spectrum Auction Design, published by Cambridge University Press and edited by Martin Bichler and Jacob K. Goeree. Their chapter addresses “Strategic Bidding in Combinatorial Clock Auctions – A Bidder Perspective.”

Proponents of the Combinatorial Clock Auction (CCA) for spectrum awards often argue that the format offers two important advantages over the Simultaneous Multiple Round Auction (SMRA): it eliminates aggregation risk by allowing for package bids; and it facilitates efficient outcomes through incentives for straightforward value-based bidding. While the first argument is irrefutable, the second argument is often questioned by practitioners, and recently by the academic literature on auctions as well. The authors offer their insights on this issue, relying on their practical experience with designing spectrum auctions and advising bidders participating in them, spanning more than 15 years.