The combinatorial multi-round ascending auction

Journal article

The Combinatorial Multi-Round Ascending Auction (CMRA) is a new auction format used in recent European spectrum auctions. We show that an auctionspecific version of truthful bidding leads to an efficient allocation. We then characterize different ex-post equilibria that feature truthful bidding, demand expansion, and demand reduction. The truthtelling equilibrium is fragile to small asymmetries in the bidders’ caps. Moreover, if bidders are sufficiently symmetric, the CMRA is vulnerable to risk-free collusion. We propose an alternative activity rule that prevents such collusive strategies while keeping other equilibria intact. We discuss outcomes of several Danish CMRAs in light of our equilibrium predictions.

Authors: Kasberger, B; Teytelboym, A

• Publication status: Accepted
• Peer review status: Peer reviewed
• Publisher: American Economic Association
• Journal: American Economic Journal: Microeconomics
• Acceptance date: 2025-10-13
• EISSN: 1945-7685
• ISSN: 1945-7669
• Language: English
• Keywords: combinatorial auctions; spectrum auctions; demand reduction; demand expansion; collusion; complementarities