STICERD Industrial Organisation Seminars
Ownership Concentration and Strategic Supply Reduction
Ulrich Doraszelski (Wharton School of the University of Pennsylvania), joint with Katja Seimz, Michael Sinkinsonx, Peichun Wang
Monday 20 May 2019 12:30 - 14:00
Many of our seminars and public events this year will continue as in person or as hybrid (online and in person) events. Please check our website listings and Twitter feed @STICERD_LSE for updates.
Unless otherwise specified, in-person seminars are open to the public. Please ensure you have informed the event contact as early as possible.
Those unable to join the seminars in-person are welcome to participate via zoom if the event is hybrid.
About this event
We explore the implications of ownership concentration for the recently-concluded incentive auction that re-purposed spectrum from broadcast TV to mobile broadband usage in the U.S. We document significant multi-license ownership of TV stations. We show that in the reverse auction, in which TV stations bid to relinquish their licenses, multi-license owners have an incentive to withhold some TV stations to drive up prices for their remaining TV stations. Using a large-scale valuation exercise, we find that this strategic supply reduction conservatively increases payouts to TV stations by between 7.0% and 20.7%.
Related
Industrial Organisation seminars are held on Mondays in term time at 12:00-13:30, in person in SAL 2.04, unless specified otherwise.
Seminar organiser: Alessandro Gavazza.
For further information please contact Sadia Ali: s.ali43@lse.ac.uk.
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