Competition & Market Manipulation
Auctions & Competitive Bidding

Brattle experts in auction theory assist clients by serving as auction valuation and bidding advisors and auction managers in a variety of settings in the electric power industry. We are also involved in optimal auction design and have been retained by bidders around the world to advise on auction strategies in other industries, including telecommunications, providing support on all aspects of the auction process.

Auction Design
Auction design encompasses the activities involved in developing the rules of the auction. These rules, which directly impact the success of the auction, include:
  • Definition of items sold (spectrum block, power supply tranche size, size of emission right)
  • Restrictions on items that can be won (spectrum cap, capacity cap)
  • Rules of the auction, including:
    • Auction format (single v. multiple round, open v. closed information)
    • Activity rules
    • Stopping rules
  • Auction evaluation criteria

Auction Manager
The auction manager sets up the auction, runs it, and provides real-time on-site monitoring of bidders and auction results. This role includes:
  • Sourcing specialized software (auction programs, web interfaces)
  • Preparing auction documentation
  • Publicizing the auction to potential bidders and responding to their inquiries
  • Qualifying bidders
  • Training qualified bidders
  • Running the auction or procurement
  • Disseminating auction information, such as round results, including reports to regulators