icannwiki

Innovative Auctions

Revision as of 22:29, 10 July 2013 by Smohnot (talk | contribs) (removed products and services)
ICANNWiki Bronze Sponsor
Founded: 1993
Country: USA
Website: Applicant Auction
Key People
Peter Cramton, Chairman

Ulrich Gall, Director
Lindsay Holden, Director
Sheel Mohnot, Project Director

Innovative Auctions specializes in providing advice on auction and market design for multiple industries in many different countries. They are the only group that has resolved gTLD contention sets via private auction. Their auction was designed by Peter Cramton, who is a lead expert on auction design and strategy. The firm is offering gTLD auction services to applicants in contention in ICANN's New gTLD Program.

ICANN New gTLD Auctions edit

In response to the need to determine winners of contention sets for each TLD applied for by more than one applicant, numerous companies have offered their own models gTLD auction models in contrast to ICANN's private auctions, which are by definition a last resort. Innovative Auctions has designed a private auction, competing with Sedo and Right of the Dot. All three groups offer slight variations on implementation and services but share commonalities in their proposed models. In all cases, the winner will pay the amount of the second-highest bid, and money will be split either equally or proportionally between the losers, so that all applicants receive a percentage of their initial investment back.[1] All applicants must agree to participate in a private auction model in order for it to proceed; otherwise, the contention set will be managed via ICANN's auction system, in which all proceeds go to ICANN as "excess funds" that will be allocated at a later date.[2]

During ICANN 45 in Toronto, Peter Cramton outlined an "ascending clock" model, where a price is increased by the auctioneer at each stage; bidders and sellers can then either drop out or bid on the increased amount.[3] This model is also preferred by Right of the Dot, though it has also proposed "sealed bid" and "live auction" models. In a sealed bid model, applicants securely send money via a courier and packages are stored in a safe place until they are opened at the auction session.[1]

Innovative Auctions Limited (the group using the Auction model proposed by Peter Cramton) have secured their fees at 1% for the first round and 4% for subsequent rounds. The first round took place in June and 6 contention sets were settled for a total of $9.01M .[4].

Dr. Cramton has conducted research on auction theory and practice since 1983, and has facilitated a variety of high stakes auctions, including a large variety of government auctions for resource rights and distribution rights, with Cramton Associates.[5] Highlights from his high-profile and unique auction experience includes holding the world's first auction on greenhouse gas emissions in the UK in 2002, designing electricity and gas markets in Colombia, and leading the FAA process to auction airport runway slots for New York City airports.[6]

His slides from his most recent presentation on his auction plan, including results and analysis of a mock auction, can be found here.

Innovative Auctions' model is preferred by the largest TLD applicant, Donuts.[7] Raymond King, applicant for 10 TLDs with Top Level Design expressed his favor for Private Auctions in general, and Innovative Auctions specifically in an opinion piece on CircleID. Several other parties have also expressed that they will use the model designed by Cramton, including .CLUB_Domains_LLC[8] and Demand Media[9]

References edit

  1. ↑ 1.0 1.1 New gTLD applicants ponder private auctions, WorldIPreview.com. Published 14 November 2012. Retrieved 6 December 2012.
  2. ↑ ICANN, Make a Difference, Slate.com. Published 27 November 2012. Retrieved 6 December 2012.
  3. ↑ Here's how Donuts wants to resolve its 158 new gTLD contention fights. Domain Incite. Published 2012 October 23. Retrieved 2012 November 13.
  4. ↑ FIRST APPLICANT AUCTION SETTLED, NEXT AUCTION AUGUST 13TH. Applicant Auction. Published 2013 June 19. Retrieved 2013 July 10.
  5. ↑ About, Cramton.umd.edu/ca
  6. ↑ Home, Cramton.umd.edu/caRetrieved 7 Jan 2013]
  7. ↑ Here's How Donuts Wants To Resolve its 158 Contention Fights, DomainIncite.comPublished 23 Oct 2012, Retrieved 8 Jan 2013
  8. ↑ [http://dotclubregistry.wordpress.com/2013/05/29/club-domains-llc-set-to-particpate-in-private-auction-for-the-new-top-level-domain-club-company-raises-3-5-million-financing/ .club Domains headed to private auction for new gTLD .club
  9. ↑ Readying for the First Private gTLD Applicant Auction
Retrieved from "https://icannwiki.org/index.php?title=Innovative_Auctions&oldid=79364"