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Katja SEIM (Yale University) – “Ownership Concentration and Strategic Supply Reduction “

November 18, 2:00 pm - 3:00 pm

CREST Microeconomics Seminar : 

Time: 2:00 pm – 3:15pm
Date:  18th November 2020
Visio

Katja SEIM (Yale University) –Ownership Concentration and Strategic Supply Reduction

Abstract: 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%. With Ulrich Doraszelski, Michael Sinkinson, and Peichun Wang.

Organizers:
Roxana Fernandez Machado (CREST), Julien Combe (CREST), and Matias Nunez (CREST)

Sponsors:
CREST

 

 

Details

Date:
November 18
Time:
2:00 pm - 3:00 pm
Event Category: