With each player able to see the other bids, there was less danger of underbidding by companies afraid of paying too much. By not publicizing the names behind the bids, the FCC made collusion difficult. The auction format, however, made it possible for bidders to see at once what combination of properties they are likely to win. This encourages the formation of alliances. Game theory consultants now are busily advising telephone companies on who their best deal partners would be.
Game theorists believe in brinkmanship.
Count on a lot of deals being made and broken right up to the Oct. 28 deadline when the FCC expects companies to declare partners in bidding, they say. Thenlook for a new round of negotiation as the spoils are divided.