In the past 15 years, governments around the world have often used auctions to sellscarce licenses to operate in markets. In many of these auctions, the number of interestedcompetitors is relatively small compared to the number of available licenses. Auctiondesign is crucial in such...

We use a spatial competition based model in a two-stage game setup to assess whether equilibrium in exchange rates among the leading currencies is attainable. We show that a stable equilibrium can be reached in the case of two leading currencies, but not in the case of three. In our model,...