The Reactions to U.S. Companies in Foreign Telecommunication Auctions

Abstract

In this study, we examine U.S. companies’ activities in foreign telecommunication auctions and analyze the reactions of host countries to these outside bidders. We identify the possible concerns of the host countries. There are two sets of concerns that could drive the behavior of foreign countries: concerns for anti-front-runner/late-comers or concerns for public welfare. The anti-front-runner/late-comers’ concerns stem from either host country’s fear of the loss of international competitiveness/future economic growth or its fear of the potential loss of revenues. The public welfare concerns stem from an anti-auction sentiment, an antimonopolistic sentiment, or an anti-foreign and anti-Americanism sentiment within the host country.