HomeDespre ECTAEventsPolitica editorialaTrimite un articolParteneri / link-uri utileArchiveAbonamentContact

ISSN 1841-8678   (print)
ISSN 1844-0029   (online)


Archive ECTAP

Note: for the period 1994-2003 the archive of the magazine will not be available online

Supplements ECTAP

If you cannot open the pdf file you need Adobe Reader.
download Adobe Reader

Creative Commons License

Theoretical and Applied Economics
No. 2 / 2019 (619), Summer

Posted offers in exogenous networks: A theoretical application and experimental results

University of Wisconsin, River Falls, USA
Southern Illinois University, Carbondale, USA

Abstract. The Federal Communications Commission (FCC) allocates bands of radio frequency on the electromagnetic spectrum to agents called primary users (PUs), typically through standard auctions. We devise ways for unused channels to be sold in a secondary market to secondary users (SUs) who do not have licensing rights to access the spectrum. We propose a model in which PUs can set prices and offer unused channels to SUs, where trading takes place in small exogenous networks. Equilibrium prices depend on both the structure of the network and buyer valuation, and interestingly, “good” buyer location on the network is not always favorable. In equilibrium, buyers with many connections on the network can face high prices despite seller competition and can even face two prices in equilibrium. We test this model in an experiment, varying network structure and price possibilities across a total of four experimental sessions. Our results provide evidence that buyers in good locations often face high prices despite seller competition and that buyers in bad locations also face high prices but have the benefit of being served first in the market.

Keywords: spectrum trading; posted offers; network experiment; network competition.

Download the full article:  


Open acces




The Economicity. The Epistemic Landscape, Marin Dinu, 2016


ISSN 1841-8678 (ediția print) / ISSN 1844-0029 (ediția online)
© Copyright Asociația Generală a Economiștilor din România / Editura Economică
Redacția: Oficiul poștal 18, Ghișeul 3 - Căsuța poștală 31, București 014820, E-mail:

© 2006-2024 Theoretical and Applied Economics