Revenue and Efficiency in Spectrum Auctions: A Theoretical and Empirical Assessment of Auction Formats

As the electromagnetic spectrum is a limited and valuable resource, auctions have emerged as an effective tool for promoting efficient allocation and generating revenue. This article proposes a theoretical review of the most commonly used auction formats for spectrum auctions, highlighting the primary strengths and weaknesses of each format. Additionally, comparisons are made between the revenue generated by different auction formats and the corresponding countries in North and South America during the 21st century. The conclusion drawn is that the Combinatorial Clock Auction format is the preferred choice, as it consistently leads to more efficient allocation, as measured by the revenue generated from each auction.