Properties of the Combinatorial Clock Auction

Properties of the Combinatorial Clock Auction

American Economic Review. September
2016, Vol. 106, Issue 9, Pages 2528-2551

The combinatorial clock auction has become popular for large-scale spectrum awards and other uses, replacing more traditional ascending or clock auctions. We describe some surprising properties of the auction, including a wide range of ex post equilibria with demand expansion, demand reduction, and predation. Our results obtain in a standard homogeneous good setting where bidders have well-behaved linear demand curves, and suggest some practical difficulties with dynamic implementations of the Vickrey auction.