In this case with few participants there is a risk of collusion among market leaders. But the main reason for difference in profitability of the spectrum licenses auctions is difference in auction designs which were effective in some countries and not in the others.
How can this be explained? Challenging theory like this is tough, but there are a lot of marks for you if you can do it well.
A sealed-bid would have worked better as this would have discouraged joint bidding, raise higher revenues as well as give new entrants a glimmer of hope. Lastly, auction design is not "one size fits all" and the failure of the government to design an auction that suited the country's environment lead to different revenues being earned.
There are of course other structures, however this one always works and makes you sound concise and clear. Body 3 Claim, counterclaim and mini-conclusion Claim. They adopted the UK design but had the additional rule that if bidders did not exceed licenses, the number of licenses would be reduced.
Klemperer say that what really matters in auction design is "robustness against collusion and attractiveness to entry". Understand the question Make sure you understand the essential point of the question.
In your essay, try to follow this structure for your essay sections. On the other hand, first-price sealed-bid auctions act in the opposite direction from ascending auctions. This reason lead to Austria earning less per capita revenue than UK and Germany.
An essay has conventional sections that it is wise to follow. Briefly explain a real life example. Write in simple sentences For clarity of thought, it is usually best for students to write short sentences.
This resulted in revenues less than that achieved by UK. Be specific, not general. Therefore, as a result, they can get zero for a question. They felt that they did not stand a chance against the strong bidders and hence did not bother participating.
Use illustrations or charts in your paper if they help emphasize a particular point. Generally, the main difference in revenues generated from spectrum rights auctions can be explained by the difference in chosen auction design. I could have combined 1 or 2 sentences together, but here I wanted to show that short sentences can aid clarity of thought.
Also, Italy had failed to anticipate that firms would react differently to those in Netherlands and UK as they now had more information.
This structure was written with an average-writing-speed student in mind. Such situation combined with the fact that Italian auction was ascending could result in possible collusions among competitors. Of course there are several other reasons for difference in revenues, among them there is a fact that UK as a country that run the first spectrum rights auction in the world, might have enjoyed high revenues simply because participants were new to the licenses and had no idea of their true value.
The reason for this is that between auctions, bidders learnt from previous auctions, came up with new strategies and learnt more about their rivals.How to Structure Your Economics Essay. "How to structure an Economics Internal Assessment is amazing. Absolutely great. Really good and inspirational information on your site!"-Faraz Mirza @ The American School of Barcelona "Thank you!
This is tremendously helpful. I am writing three IAs tonight. Apr 14, · I achieved an A* in economics after only getting a D in AS economics, I had to resit both AS modules in my second year.
This is how I basically structured all my essays, remember to. Type Of Market Structure Economics Essay. Print Reference this. Published: 23rd March, In economics term, market structure is the number, size, kind and distribution of buyers and sellers.
The good advertising will get customers who are loyal to their product and also can increase their sales. The objective of make an advertisement is. Example Economics Essays. Search to find a specific economics essay or browse from the list below: Critical Review: Reich's Why Growth is Good.
Introduction Reich (, p. 1) argues that economic growth leads to increased prosperity in the developed, emerging and developing world.
The argument is focused on the. A compelling economics essay involves working out the structure of the paper before the actual process of writing. Next, write down the structure of the argument that will logically guide your reader to the conclusive section and generate an outline.
Writing Tips For Economics Research Papers Plamen Nikolov, Harvard University y June 10, its structure can be organized like a newspaper article.
Organize the paper in triangular or newspaper style, not in joke or novel A good paper is not a travelogue of .Download