TY - JOUR
T1 - Pot of gold or winner's curse? An event study of the auctions of 3G mobile telephone licences in the UK
AU - Cable, John
AU - Henley, Andrew Gordon
AU - Holland, Kevin
PY - 2002/12
Y1 - 2002/12
N2 - 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.
AB - 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.
UR - http://hdl.handle.net/2160/9200
U2 - 10.1111/j.1475-5890.2002.tb00068.x
DO - 10.1111/j.1475-5890.2002.tb00068.x
M3 - Article
SN - 0143-5671
VL - 23
SP - 447
EP - 462
JO - Fiscal Studies
JF - Fiscal Studies
IS - 4
ER -