Game-Theoretical Consulting for Bidders in Complex Auctions

Auctions have been used for decades by governments to distribute the rights to use electromagnetic spectrum by commercial companies for broadcasting and communication purposes. The spectrum auctions are important high-stake events with complex rules which often require years of preparations from both bidders and regulatory authorities. Depending on the specific auction format used, a spectrum auction can last up to several months from the first bid to the identification of winners.

Since spectrum rights are usually assigned for decades, bidders spend significant effort on preparations to the auction. Astradi offers its competence to spectrum auction participants at every stage:

• Assessment of spectrum valuation models.
• Analysis of the auction rules.
• Analysis of the competition.
• Analysis of the strategy space in the auction.
• Tutorials and organizing of test auctions using Astradi OptiTrade software, which supports all major auction formats used for spectrum auctions worldwide.
• Planning of processes and decisions within the auction team.
• Real-time analysis and support.
• Development of necessary software.

Astradi GmbH developed bidding strategies for Telefónica o2 Germany and an Austrian telecom provider in spectrum auctions.