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Inefficiency in spectrum auctions – empirical evidence

100%

Kuś A.

Zeszyty Naukowe. Organizacja i Zarządzanie / Politechnika Śląska

2021

tom z. 150

115--130

Purpose: The spectrum is scarce recourses, so it is very important to allocate it in a way to maximize the economic and social returns to the countries` economies. Economists agree that the best way to allocate rare resources are auctions. Despite their good properties, in some environments, they can create inefficiency. We describe some potential sources of inefficiency in spectrum auctions and some negative effects of inefficient spectrum allocation. We also discuss how the government through appropriate spectrum policy and auction designing can promote efficient spectrum allocation. Design/methodology/approach: The paper is based on the literature on the spectrum auction and public documents published by national spectrum authorities. Theoretical discussions are supported by case studies of real world spectrum auctions. Much attention has been paid to the case of the Polish 4G auction. Findings: Extremely high reserve prices or rigorous approach to promoting entry could lead to price distortions, misallocation or even unsold spectrum which harm both competition and consumers. The case of the Polish 4G auction confirms that gaps in the detailed auction rules may lead to significant delays in frequency allocation and increase the risk of an ineffective auction outcome. Practical implications: In the light of our findings, it is important that the rules of the auction in the 3.6 GHz band currently planned in Poland should allow the regulator to control the pace of the auction and take into account the risk of inefficient outcome associated with passive bids. Originality/value: The discussions made in this paper could help policy makers in Poland and other countries in spectrum auction designing.

Using quasi-experimental designs for causal effects

80%

Kuś A.

Zeszyty Naukowe. Organizacja i Zarządzanie / Politechnika Śląska

2024

tom z. 194

217--232

Purpose: This paper discusses the concept of identifying the causal effects using quasiexperimental methods and applies this method to investigate the impact of high license fees on the quality of mobile Internet in Poland. Design/methodology/approach: Quasi-experiment design, especially the difference-indifferences method and the interrupted time series design were used to examine the causal effects of spectrum fees in Poland. Data on the quality of mobile Internet in Poland and around the world published by Akamai and data provided by Ookla® under the agreement1 were used for analysis. Findings: The study did not confirm the impact of high spectrum fees on the quality of the Internet in Poland. Practical implications: The results obtained can help policymakers in Poland and other countries in making decisions on spectrum management. Originality/value: This is the first paper using the quasi-experimental method to examine the effects of the 4G auction in Poland.