NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
loading...

Ownership Concentration and Strategic Supply Reduction

Ulrich Doraszelski, Katja Seim, Michael Sinkinson, Peichun Wang

NBER Working Paper No. 23034
Issued in January 2017
NBER Program(s):Industrial Organization

We explore the sensitivity of the U.S. government's ongoing incentive auction to multi-license ownership by broadcasters. We document significant broadcast TV license purchases by private equity firms prior to the auction and perform a prospective analysis of the effect of ownership concentration on auction outcomes. We find that multi-license holders are able to raise spectrum acquisition costs by 22% by strategically withholding some of their licenses to increase the price for their remaining licenses. We analyze a potential rule change that reduces the distortion in payouts to license holders by up to 80%, but find that lower participation could greatly increase payouts and exacerbate strategic effects.

download in pdf format
   (5062 K)

email paper

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w23034

Users who downloaded this paper also downloaded* these:
Faccio and Zingales w23041 Political Determinants of Competition in the Mobile Telecommunication Industry
Syverson w21974 Challenges to Mismeasurement Explanations for the U.S. Productivity Slowdown
Ahn, Kaplan, Moll, Winberry, and Wolf w23494 When Inequality Matters for Macro and Macro Matters for Inequality
Angrist, Autor, Hudson, and Pallais w23015 Evaluating Post-Secondary Aid: Enrollment, Persistence, and Projected Completion Effects
Hermalin and Weisbach w23121 Assessing Managerial Ability: Implications for Corporate Governance
 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us