Sequential Auctions with Endogenously Determined Reserve Prices

I model an auction game in which two identical licenses for partici-pating in an oligopolistic market are sold in a sequential auction. There is no incumbent. The first auction is a standard first-price, sealed-bid type with an exogenously set reserve price, while the second has the sold price of the first unit as the reserve price. This auction rule mimics the license auction for the Turkish Global Mobile Telecommunications in 2000. For some cases this auction setup generates the same revenue as selling the monopoly right with the second-price, sealed-bid auction; for the others it creates less revenue