Auctions

NERA is a leading global advisor to government agencies and private-sector companies on the design and implementation of auctions and bidding processes for procurement. We also advise bidders on bid strategy for high stakes auctions and on responses to government consultations on award processes. Our consultants have design and strategy experience with all types of auction formats, including sealed bids, simultaneous multiple round auctions, ascending and descending clock auctions, and combinatorial bidding. Our advice is grounded in a thorough understanding of the academic literature on game theory, and practical experience with all aspects of auction implementation and bidding.

Our auction advisory work spans many industry sectors. NERA pioneered the use of auctions to procure energy for retail customers from existing market resources. We administer solicitations that encourage the development of solar energy. In radio spectrum, our consultants work around the world to implement awards of frequency licenses for mobile telephony, wireless broadband, and other communication services. We are also experts in adapting auction formats to other products and uses, such as airport slots, financial instruments, procurement and trading platforms, and universal service subsidies.

NERA provides auction advice in three primary areas:

• Market design. We create new market processes, such as auctions and trading systems, to replace administrative procedures or negotiation practices, or to address specific regulatory and competition objectives. Our solutions can greatly improve market efficiency, cutting transaction costs for both buyers and sellers, and encouraging competition by reducing barriers to entry.
• Auction design and implementation. We advise on the choice of auction format, the packaging of items being sold or procured, and all aspects of the bidding rules and procedures. Where required, we offer full service solutions, including industry analysis, marketing, organizing consultation processes, administering applications, and running the auction. We also procure best-in-class software to run auctions.
• Bidder support. We advise bidders through all phases of the auction process: helping clients provide input to regulators on auction design and rules, educating the client about the nature of the auction, and providing strategic and logistical help in developing and implementing a bidding strategy. NERA experts typically provide on-site support to clients throughout each auction. We also offer software solutions for training bid teams and tracking complex auctions.