ABSTRACT
Auction is an allocation mechanism that has been in use by both private and public enterprises since antiquity. For private auctions, at times specific organisations are designated with the responsibility of conducting auctions. Private auctions are guided primarily by individual objectives. Public auctions, however, are meant to be guided by social considerations. The very term First-Come-First-Served (FCFS) suggests the process of allocation. Comparative Hearing is very commonly practiced in the allocation of resources like spectrum licenses. The Administrative Process of allocation is also popularly known as Beauty Contest. This has been one of the earliest processes of allocating spectrum licenses in Canada and the European Union. The principles of auctions can be used to understand certain other economic phenomena. The behaviour of agents in the context of lobbying and rent seeking can also be understood in light of Auction Theory.
