Federal Communications Commission reverse incentive spectrum auction: outcomes and impact on the broadcast industry

ABSTRACT This study explores the impact the first reverse incentive spectrum auction in the United States had on the broadcast industry. The reverse incentive auction is considered the first failed spectrum auction because it did not live up to profit or participation expectations. This study examines various economic and political factors that possibly contributed to the auction disappointment, including the asymmetric information between the broadcast industry and Federal Communications Commission (FCC) and the broadcast industry’s waning influence over the FCC. These issues are explored through a mixed-methods study consisting of a quantitative auction data set and interviews with broadcast professionals.