Spectrum allocation in India
Student name: Ms Ankita Ajitsaria
Guide: Mr Soumendu Sarkar
Year of completion: 2013
Host Organisation: TERI University
Abstract: The paper attempts to deal with the problem of price discovery of spectrum in India. Price discovery of
spectrum is important given the high economic value of this scarce resource. The study shows price
discovery through a process of bid simulation in Octave. The recent auction in India faced the problem of
low revenue generation and limited response. The aim of the study has been to design an auction format
that maximizes the revenue to the seller. This has been achieved by using Myerson auction mechanism
(1981). The optimal Myerson result has been approximated by using a prior free distribution as the prior
distribution for the bidders are unknown in most cases. The result obtained in Octave generates an optimal
reserve price and shows price discovery. Further, the result of the empirical and the actual uniform
distribution converge showing consistency of the result.
