Pot of gold or winner's curse? An event study of the auctions of 3G mobile telephone licences in the UK
Cable, John, Henley, Andrew and Holland, Kevin (2002) Pot of gold or winner's curse? An event study of the auctions of 3G mobile telephone licences in the UK. Fiscal Studies, 23, (4), 447-462. (doi:10.1111/j.1475-5890.2002.tb00068.x).
Commentators have suggested that the winning companies in the UK 3G mobile telephone auction overpaid for their licences. However, event-study method using the market model under ordinary least squares (OLS), robust and structural time-series estimation yields no systematic evidence of the 'winner's curse'. Positive as well as negative one-day wealth effects are observed amongst both winners and losers, and there is no lasting adverse market reaction to the winners, taken as a group. We conclude there is no case for easing the regulatory stance in the industry on grounds that the winners paid too much.
|Keywords:||winner's curse, 3g licence auction|
|Subjects:||H Social Sciences > HE Transportation and Communications
H Social Sciences > HF Commerce
|Divisions:||University Structure - Pre August 2011 > School of Management
|Date Deposited:||18 Apr 2007|
|Last Modified:||08 Jun 2012 12:41|
|RDF:||RDF+N-Triples, RDF+N3, RDF+XML, Browse.|
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