Ofcom yesterday released a further consultation as it seeks to refine its spectrum auction for the 10 GHz, 28 GHz, 32 GHz and 40 GHz frequency bands.  Comments are due by no later than 8 February 2007.

Auction / game theory experts (both of you) take note:  Ofcom want your opinion on the auction design - should it award licences through a ’simultaneous multiple-round combinatorial clock auction’ or use the more straightforward simultaneous multiple-round auction? 

I’ve probably bid in at least ten computerised auctions at the FCC and they are always more complicated than they need to be.  The danger here is that the administrative costs of paying for a consultant to think-up these more exotic auction designs and the resulting IT and learning costs outweigh the theoretical efficiency gains. Worse still, ordinary bidders may become confused and might just avoid the auctions altogether and use the secondary market. 

Ebay it ain’t!