mechanism to allocate the rights in the different cities, and assuming everyone is truthful (as they should be), what would be the payment of ATT? 1. 0.7B 2. 0.4B 3. 0.6B 4. None of the above
The FCC is interested in auctioning spectrum usage rights in the cities of San Francisco (SF), Chicago (C), Los Angeles (LA), and New York (NY). There are three interested participants: Verizon, ATT, and Sprint. Verizon is only interested in buying if it gets rights in all of the cities, valuing this bundle at 1B. ATT is interested in (SF,LA) and (NY, C), with a value of 0.4B for the former and 0.7B for the latter. Sprint is interested in any 2 of the 4 cities, and is willing to pay 0.6B irrespective of the pair.
Assuming that FCC conducts the VCG mechanism to allocate the rights in the different cities, and assuming everyone is truthful (as they should be), what would be the payment of ATT?
| 1. |
0.7B
|
|
| 2. |
0.4B
|
|
| 3. |
0.6B
|
|
| 4. |
None of the above |
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