From 1994 to 2008, spectrum was sold almost exclusively using the simultaneous multiple round auction (SMRA). It is based on simple rules which make it easy to explain and implement, yet they create considerable strategic complexity. Since items have to be won one-by-one, bidders who compete aggressively for combinations of items risk paying too much if they ultimately win an inferior subset. This "exposure risk" suppresses bidding with adverse consequences for the auction's efficiency and revenue.
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