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--></style></head><body lang=EN-CA link=blue vlink=purple><div class=WordSection1><p class=MsoNormal><span style='mso-fareast-language:EN-US'>Thanks it does. <o:p></o:p></span></p><p class=MsoNormal><span style='mso-fareast-language:EN-US'><o:p> </o:p></span></p><p class=MsoNormal><span style='mso-fareast-language:EN-US'>However, I don’t see where the issues arising from the bid credits/multiplier have been addressed?<o:p></o:p></span></p><p class=MsoNormal><span style='mso-fareast-language:EN-US'><o:p> </o:p></span></p><p class=MsoNormal><span style='mso-fareast-language:EN-US'>The implementation guidance and auctions discussions have not yet addressed timing required for AS to prepare and secure funding, increased incentives on gaming and impacts to other non-AS applicants. <o:p></o:p></span></p><p class=MsoNormal><span style='mso-fareast-language:EN-US'><o:p> </o:p></span></p><p class=MsoNormal><span style='mso-fareast-language:EN-US'>How are we ensuring a fair process in the scenario below whereby applicants who were unable to partner up with a AS applicant are not put at a disadvantage? <o:p></o:p></span></p><p class=MsoNormal><span style='mso-fareast-language:EN-US'><o:p> </o:p></span></p><p class=MsoNormal><span style='mso-fareast-language:EN-US'>Cheers,<o:p></o:p></span></p><p class=MsoNormal><span style='mso-fareast-language:EN-US'><o:p> </o:p></span></p><p class=MsoNormal><span style='mso-fareast-language:EN-US'>Christa<o:p></o:p></span></p><p class=MsoNormal><span style='mso-fareast-language:EN-US'><o:p> </o:p></span></p><div><div style='border:none;border-top:solid #E1E1E1 1.0pt;padding:3.0pt 0cm 0cm 0cm'><p class=MsoNormal><b><span lang=EN-US>From:</span></b><span lang=EN-US> Jeff Neuman <jeff@jjnsolutions.com> <br><b>Sent:</b> July 9, 2020 12:16 PM<br><b>To:</b> christa@dottba.com; 'Kurt Pritz' <kurt@kjpritz.com>; 'Kathy Kleiman' <kathy@kathykleiman.com><br><b>Cc:</b> gnso-newgtld-wg@icann.org<br><b>Subject:</b> RE: [Gnso-newgtld-wg] Vickey auctions<o:p></o:p></span></p></div></div><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><span lang=EN-US>Christa,<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US><o:p> </o:p></span></p><p class=MsoNormal><span lang=EN-US>We already discussed and I believe we agreed as a group to the following recommendations which will be out shortly as part of Package 7:<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US><o:p> </o:p></span></p><p class=MsoNormal><u><span lang=EN-US style='font-family:"Arial",sans-serif;color:black'>Recommendation xx (rationale 9)</span></u><span lang=EN-US style='font-family:"Arial",sans-serif;color:black'>: If an applicant qualifies for Applicant Support and is part of a contention set that is resolved through an auction of last resort, a bid credit, multiplier, or other similar mechanism must apply to the bid submitted by that applicant. </span><span lang=EN-US><o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US><o:p> </o:p></span></p><p class=MsoNormal style='margin-left:36.0pt'><u><span lang=EN-US style='font-family:"Arial",sans-serif;color:black'>Implementation Guidance xx (rationale 9)</span></u><span lang=EN-US style='font-family:"Arial",sans-serif;color:black'>: Research should be conducted in the implementation phase to determine the exact nature and amount of the bid credit, multiplier, or other mechanism described in recommendation xx. Research should also be completed to determine a maximum value associated with the bid credit, multiplier, or other mechanism.</span><span lang=EN-US><o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US><o:p> </o:p></span></p><p class=MsoNormal style='margin-left:36.0pt'><u><span lang=EN-US style='font-family:"Arial",sans-serif;color:black'>Implementation Guidance xx (rationale 9)</span></u><span lang=EN-US style='font-family:"Arial",sans-serif;color:black'>: If the Applicant getting Applicant Support prevails in an auction, there should be restrictions placed on the Applicant from assigning the Registry Agreement, and/or from any Change of Control for a period of no less than three (3) years. This restriction seeks to prevent gaming of the Applicant Support Program whereby an applicant transfers its ownership of a registry to a third party in exchange for any form of financial gain. However, assignments that become necessary for the following reasons shall be permitted:</span><span lang=EN-US><o:p></o:p></span></p><p class=MsoNormal style='margin-left:72.0pt;text-indent:-18.0pt;mso-list:l0 level1 lfo2;vertical-align:baseline'><![if !supportLists]><span lang=EN-US style='font-size:10.0pt;font-family:Symbol;color:black'><span style='mso-list:Ignore'>·<span style='font:7.0pt "Times New Roman"'> </span></span></span><![endif]><span lang=EN-US style='font-family:"Arial",sans-serif;color:black'>Assignments due to going out of business<o:p></o:p></span></p><p class=MsoNormal style='margin-left:72.0pt;text-indent:-18.0pt;mso-list:l0 level1 lfo2;vertical-align:baseline'><![if !supportLists]><span lang=EN-US style='font-size:10.0pt;font-family:Symbol;color:black'><span style='mso-list:Ignore'>·<span style='font:7.0pt "Times New Roman"'> </span></span></span><![endif]><span lang=EN-US style='font-family:"Arial",sans-serif;color:black'>Assignments due to death or retirement of a majority shareholder<o:p></o:p></span></p><p class=MsoNormal style='margin-left:72.0pt;text-indent:-18.0pt;mso-list:l0 level1 lfo2;vertical-align:baseline'><![if !supportLists]><span lang=EN-US style='font-size:10.0pt;font-family:Symbol;color:black'><span style='mso-list:Ignore'>·<span style='font:7.0pt "Times New Roman"'> </span></span></span><![endif]><span lang=EN-US style='font-family:"Arial",sans-serif;color:black'>Assignments due to EBERO<o:p></o:p></span></p><p class=MsoNormal style='margin-left:72.0pt;text-indent:-18.0pt;mso-list:l0 level1 lfo2;vertical-align:baseline'><![if !supportLists]><span lang=EN-US style='font-size:10.0pt;font-family:Symbol;color:black'><span style='mso-list:Ignore'>·<span style='font:7.0pt "Times New Roman"'> </span></span></span><![endif]><span lang=EN-US style='font-family:"Arial",sans-serif;color:black'>Assignments to affiliates or subsidiaries<o:p></o:p></span></p><p class=MsoNormal style='margin-left:72.0pt;text-indent:-18.0pt;mso-list:l0 level1 lfo2;vertical-align:baseline'><![if !supportLists]><span lang=EN-US style='font-size:10.0pt;font-family:Symbol;color:black'><span style='mso-list:Ignore'>·<span style='font:7.0pt "Times New Roman"'> </span></span></span><![endif]><span lang=EN-US style='font-family:"Arial",sans-serif;color:black'>Assignments required by competition authorities<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US><o:p> </o:p></span></p><p class=MsoNormal style='margin-left:36.0pt'><span lang=EN-US style='font-family:"Arial",sans-serif;color:black'>All assignments after such time shall be governed under the then-current Registry Agreement standard provisions; provided that any Assignment or Change of Control after the third year, but prior to the seventh (7th) year, shall require the applicant to repay the full amount of financial support received through the ASP Program plus an additional ten percent (10%).</span><span lang=EN-US><o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US><o:p> </o:p></span></p><p class=MsoNormal><span lang=EN-US>Hope that helps.<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US><o:p> </o:p></span></p><div><p class=MsoNormal><span lang=EN-US><img width=300 height=3 style='width:3.125in;height:.0312in' id="Picture_x0020_1" src="cid:image001.png@01D655EE.BA07D060"></span><span lang=EN-US><o:p></o:p></span></p><p class=MsoNormal style='background:white'><span lang=EN-US style='font-size:13.5pt;font-family:"Trebuchet MS",sans-serif;color:#111111'>Jeff Neuman<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US style='font-size:14.0pt;font-family:"Book Antiqua",serif;color:#0070C0;background:white'>JJN Solutions, LLC</span><span lang=EN-US style='font-size:14.0pt;font-family:"Book Antiqua",serif;color:#111111;background:white'><o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US style='font-size:12.0pt;font-family:"Trebuchet MS",sans-serif;color:#111111;background:white'>Founder & CEO<br>+1.202.549.5079<br>Vienna, VA 22180<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US style='font-size:12.0pt;font-family:"Trebuchet MS",sans-serif;color:#111111;background:white'><a href="mailto:Jeff@JJNSolutions.com">Jeff@JJNSolutions.com</a></span><span lang=EN-US style='font-size:10.0pt;font-family:"Trebuchet MS",sans-serif;color:#111111'><br></span><span lang=EN-US><a href="http://jjnsolutions.com/" target="_blank"><span style='font-size:12.0pt;font-family:"Trebuchet MS",sans-serif;color:#09757A;background:white'>http://jjnsolutions.com</span></a><o:p></o:p></span></p></div><p class=MsoNormal><span lang=EN-US><o:p> </o:p></span></p><div><div style='border:none;border-top:solid #E1E1E1 1.0pt;padding:3.0pt 0cm 0cm 0cm'><p class=MsoNormal><b><span lang=EN-US>From:</span></b><span lang=EN-US> Gnso-newgtld-wg <<a href="mailto:gnso-newgtld-wg-bounces@icann.org">gnso-newgtld-wg-bounces@icann.org</a>> <b>On Behalf Of </b><a href="mailto:christa@dottba.com">christa@dottba.com</a><br><b>Sent:</b> Thursday, July 9, 2020 2:47 PM<br><b>To:</b> 'Kurt Pritz' <<a href="mailto:kurt@kjpritz.com">kurt@kjpritz.com</a>>; 'Kathy Kleiman' <<a href="mailto:kathy@kathykleiman.com">kathy@kathykleiman.com</a>><br><b>Cc:</b> <a href="mailto:gnso-newgtld-wg@icann.org">gnso-newgtld-wg@icann.org</a><br><b>Subject:</b> Re: [Gnso-newgtld-wg] Vickey auctions<o:p></o:p></span></p></div></div><p class=MsoNormal><span lang=EN-US><o:p> </o:p></span></p><p class=MsoNormal>Hi All,<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Adding to Kurt, Kathy and Donna’s comments.<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>I feel like we are putting the cart before the horse. I’m not sure how we can adequately discuss auctions until we iron out the auction bid credit/multiplier for Applicant Support applicants as:<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><ul style='margin-top:0cm' type=disc><li class=MsoListParagraphCxSpFirst style='margin-left:18.0pt;mso-add-space:auto;mso-list:l1 level1 lfo5'>Bid credits/multiplier provide incentives to Applicant Support applicants putting other applicants within that contention set at a disadvantage <o:p></o:p></li><li class=MsoListParagraphCxSpMiddle style='margin-left:18.0pt;mso-add-space:auto;mso-list:l1 level1 lfo5'>Auction credits provide financial incentives and the potential of gaming<o:p></o:p></li><li class=MsoListParagraphCxSpMiddle style='margin-left:18.0pt;mso-add-space:auto;mso-list:l1 level1 lfo5'>Potential bid credit maximums may affect bidding methodology <o:p></o:p></li><li class=MsoListParagraphCxSpMiddle style='margin-left:18.0pt;mso-add-space:auto;mso-list:l1 level1 lfo5'>Change the dynamics of resolving a contention set via creative solutions/JVs <o:p></o:p></li><li class=MsoListParagraphCxSpMiddle style='margin-left:18.0pt;mso-add-space:auto;mso-list:l1 level1 lfo5'>Impact all other applicants within that contention set<o:p></o:p></li><li class=MsoListParagraphCxSpMiddle style='margin-left:18.0pt;mso-add-space:auto;mso-list:l1 level1 lfo5'>Sufficient time to prepare and secure additional funding for example, 30 days to submit a bid is unreasonable<o:p></o:p></li><li class=MsoListParagraphCxSpLast style='margin-left:18.0pt;mso-add-space:auto;mso-list:l1 level1 lfo5'>Educational component on auction process, bidding strategy, values, funding, etc. <o:p></o:p></li></ul><p class=MsoNormal>One scenario, a contention set of six with one AS applicant, first person lucky enough to enter into a JV with the AS applicant is at an economic advantage and has the trump card to ensure the auction is through ICANN. Depending on your perspective, this may have a positive/negative outcome but we haven’t discussed these types of scenarios or considered the implications and potential safe guards. <o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>I’d suggest that we cover off bidding credit/multipliers beforehand so we can have comprehensive discussions in order to develop all-encompassing recommendations. If not, I think we’ll need to return to the auction discussion to address the deficiencies. <o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Cheers,<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Christa<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><o:p> </o:p></p><div><div style='border:none;border-top:solid #E1E1E1 1.0pt;padding:3.0pt 0cm 0cm 0cm'><p class=MsoNormal><b><span lang=EN-US>From:</span></b><span lang=EN-US> Gnso-newgtld-wg <<a href="mailto:gnso-newgtld-wg-bounces@icann.org">gnso-newgtld-wg-bounces@icann.org</a>> <b>On Behalf Of </b>Kurt Pritz<br><b>Sent:</b> July 9, 2020 11:29 AM<br><b>To:</b> Kathy Kleiman <<a href="mailto:kathy@kathykleiman.com">kathy@kathykleiman.com</a>><br><b>Cc:</b> <a href="mailto:gnso-newgtld-wg@icann.org">gnso-newgtld-wg@icann.org</a><br><b>Subject:</b> Re: [Gnso-newgtld-wg] Vickey auctions<o:p></o:p></span></p></div></div><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Hi Kathy: <o:p></o:p></p><div><p class=MsoNormal><o:p> </o:p></p></div><div><p class=MsoNormal>A fine point: I believe a Vickrey auction is one where the parties don’t know the bids of the other parties bit can know their identities. <o:p></o:p></p></div><div><p class=MsoNormal><o:p> </o:p></p></div><div><div><p class=MsoNormal>Regardless of whether a Vickrey, top-price or ascending bid auction model is selected, my concern has to do with the timing of the sealed bid. I can think of nothing more discouraging to a newcomer, investor and potential contributor to the domain name industry than to say, “Pay the $185,000 application fee and, oh yeah, give us a sealed bid for how many millions you will bid in a sealed auction where the delegation might take place months or years from now.” Pile onto that the uncertainty of how the evaluation process will play out and additional costs that might be added, how many bidders there are, who they are, and the relative value of TLDs at some point in the future when the delegations are made. I don’t know of any other auctions that operate in this manner. In other instances, sealed bids are generally required just before the final award. <o:p></o:p></p></div><div><p class=MsoNormal><o:p> </o:p></p></div><div><p class=MsoNormal>Put another way, requiring the sealed bid at the time of application will greatly discourage new participants — especially smaller ones — from our industry. If we are seeking to encourage competition and choice, then the auction should take place close in time to the delegation — whether the auction is sealed bid - top price, sealed bid - Vickrey, or the clock model applied in the first round. <o:p></o:p></p></div><div><p class=MsoNormal><o:p> </o:p></p></div><div><p class=MsoNormal>A final point if I may, is that there has been a substantial amount of study done on the benefits and drawbacks to Vickrey auctions — and there have been examples of unintended detrimental results. The articles I read indicate that each instance includes a complex set of issues requiring advice of competent economists prior to selection of a Vickrey mechanism. The SubPro group might have had long discussions regarding this but I do not think they have been appropriately deep or informed by economics science. <o:p></o:p></p></div><div><p class=MsoNormal><o:p> </o:p></p></div><div><p class=MsoNormal>I do not have an issue as to whether a Vickrey or other form of auction is selected, but think there should be an appropriate study if we are to deviate from the past. Our high-level policy recommendation might be to select an auction model encouraging "individuals bid truthfully” and alert ICANN to consider Vickrey as an alternative to the current model and the need for study as part of the implementation.<o:p></o:p></p></div><div><p class=MsoNormal><o:p> </o:p></p></div><div><p class=MsoNormal>Maybe ICANN could get that study going now so that it could inform the implementation effort. <o:p></o:p></p></div><div><p class=MsoNormal><o:p> </o:p></p></div><div><p class=MsoNormal>Thanks this opportunity to speak up everyone. <o:p></o:p></p></div><div><p class=MsoNormal><o:p> </o:p></p></div><div><p class=MsoNormal>Kurt <o:p></o:p></p></div><div><p class=MsoNormal><o:p> </o:p></p></div><div><p class=MsoNormal><o:p> </o:p></p></div><div><p class=MsoNormal style='margin-bottom:12.0pt'><o:p> </o:p></p><blockquote style='margin-top:5.0pt;margin-bottom:5.0pt'><div><p class=MsoNormal>On Jul 9, 2020, at 10:12 AM, Kathy Kleiman <<a href="mailto:kathy@kathykleiman.com">kathy@kathykleiman.com</a>> wrote:<o:p></o:p></p></div><p class=MsoNormal><o:p> </o:p></p><div><div><div><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Helvetica Neue"'>Hi Donna,<o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Helvetica Neue"'>Tx for the question. In a true Vickery Auction, the parties don't know who they are bidding against. Everyone then has the opportunity to bid what they think the TLD is worth to them -- without knowledge of who they are bidding against. A bidder can't raise the bid knowing they are bidding against a small party, a single TLD, or a Global South applicant. <o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Helvetica Neue"'><o:p> </o:p></span></p></div><div><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Helvetica Neue"'>That means that the bids, overall, are lower. Hopefully, this will allow the occasional small party, single TLD, or Global South applicant may win -- and that's one of the goals we have sent for our program. <o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Helvetica Neue"'><o:p> </o:p></span></p></div><div><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Helvetica Neue"'>Again, appreciate your question. <o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Helvetica Neue"'>Best, Kathy<o:p></o:p></span></p></div><blockquote style='margin-top:5.0pt;margin-bottom:5.0pt'><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Helvetica Neue"'><o:p> </o:p></span></p></blockquote><blockquote style='margin-top:5.0pt;margin-bottom:5.0pt'><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Helvetica Neue"'><br>----- Original Message -----<o:p></o:p></span></p><div><div><p class=MsoNormal style='background:#E4E4E4'><b><span style='font-size:9.0pt;font-family:"Helvetica Neue";color:black'>From:</span></b><b><span style='font-size:9.0pt;font-family:"Helvetica Neue"'><o:p></o:p></span></b></p></div><p class=MsoNormal style='background:#E4E4E4'><span style='font-size:9.0pt;font-family:"Helvetica Neue";color:black'>"Austin Donna" <<a href="mailto:Donna.Austin@team.neustar">Donna.Austin@team.neustar</a>></span><span style='font-size:9.0pt;font-family:"Helvetica Neue"'><o:p></o:p></span></p></div><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Helvetica Neue"'><o:p> </o:p></span></p><div><p class=MsoNormal><b><span style='font-size:9.0pt;font-family:"Helvetica Neue"'>To:<o:p></o:p></span></b></p></div><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Helvetica Neue"'>"Kathy Kleiman" <<a href="mailto:kathy@kathykleiman.com">kathy@kathykleiman.com</a>>, "<a href="mailto:gnso-newgtld-wg@icann.org">gnso-newgtld-wg@icann.org</a>" <gnso-newgtld-wg@icannorg><o:p></o:p></span></p><div><p class=MsoNormal><b><span style='font-size:9.0pt;font-family:"Helvetica Neue"'>Cc:<o:p></o:p></span></b></p></div><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Helvetica Neue"'><o:p> </o:p></span></p><div><p class=MsoNormal><b><span style='font-size:9.0pt;font-family:"Helvetica Neue"'>Sent:<o:p></o:p></span></b></p></div><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Helvetica Neue"'>Wed, 8 Jul 2020 15:33:49 +0000<o:p></o:p></span></p><div><p class=MsoNormal><b><span style='font-size:9.0pt;font-family:"Helvetica Neue"'>Subject:<o:p></o:p></span></b></p></div><p class=MsoNormal style='margin-bottom:12.0pt'><span style='font-size:9.0pt;font-family:"Helvetica Neue"'>RE: [Gnso-newgtld-wg] Vickey auctions<o:p></o:p></span></p><div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='color:#1F497D'>Kathy</span><span style='font-size:9.0pt;font-family:"Helvetica Neue"'><o:p></o:p></span></p><div><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Helvetica Neue"'><o:p> </o:p></span></p></div><div><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Helvetica Neue"'><o:p> </o:p></span></p></div><div><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Helvetica Neue"'><o:p> </o:p></span></p></div><div><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Helvetica Neue"'> <o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Helvetica Neue"'><o:p> </o:p></span></p></div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='color:#1F497D'>The Vickrey auction model may be inherently expedient, but I’m still not convinced that it is inherently fair particularly among players large and small. I’m interested to understand how you think this is the very best way to ensure that smaller parties can prevail from time to time and that the Global South can obtain a share of new gTLDs. </span><span style='font-size:9.0pt;font-family:"Helvetica Neue"'><o:p></o:p></span></p><div><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Helvetica Neue"'><o:p> </o:p></span></p></div><div><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Helvetica Neue"'><o:p> </o:p></span></p></div><div><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Helvetica Neue"'><o:p> </o:p></span></p></div><div><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Helvetica Neue"'> <o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Helvetica Neue"'><o:p> </o:p></span></p></div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='color:#1F497D'>Donna</span><span style='font-size:9.0pt;font-family:"Helvetica Neue"'><o:p></o:p></span></p><div><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Helvetica Neue"'><o:p> </o:p></span></p></div><div><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Helvetica Neue"'><o:p> </o:p></span></p></div><div><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Helvetica Neue"'><o:p> </o:p></span></p></div><div><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Helvetica Neue"'> <o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Helvetica Neue"'><o:p> </o:p></span></p></div><div><div style='border:none;border-top:solid #E1E1E1 1.0pt;padding:3.0pt 0cm 0cm 0cm'><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><b>From:</b> Gnso-newgtld-wg [<a href="mailto:gnso-newgtld-wg-bounces@icann.org">mailto:gnso-newgtld-wg-bounces@icann.org</a>] <b>On Behalf Of </b>Kathy Kleiman<br><b>Sent:</b> Monday, July 06, 2020 7:30 AM<br><b>To:</b> <a href="mailto:gnso-newgtld-wg@icann.org">gnso-newgtld-wg@icann.org</a><br><b>Subject:</b> [Gnso-newgtld-wg] Vickey auctions<span style='font-size:9.0pt;font-family:"Helvetica Neue"'><o:p></o:p></span></p><div><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Helvetica Neue"'><o:p> </o:p></span></p></div><div><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Helvetica Neue"'><o:p> </o:p></span></p></div></div></div><div><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Helvetica Neue"'><o:p> </o:p></span></p></div><div><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Helvetica Neue"'> <o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Helvetica Neue"'><o:p> </o:p></span></p></div><div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='font-size:9.0pt;font-family:"Helvetica",sans-serif'>Hi All,</span><span style='font-size:9.0pt;font-family:"Helvetica Neue"'><o:p></o:p></span></p><div><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Helvetica Neue"'><o:p> </o:p></span></p></div><div><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Helvetica Neue"'><o:p> </o:p></span></p></div></div><div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='font-size:9.0pt;font-family:"Helvetica",sans-serif'>For days and months we discussed auctions and ways to improve them. One thing we learned is that Vickrey auctions are inherently fair. They provide a process that encourages bidders to bid the price that is fair to them -- and set out exactly what they are willing to pay. They avoid collusion and unfair dealing. I thought we had agreed to recommend this method -- a sealed bid at the time of application. </span><span style='font-size:9.0pt;font-family:"Helvetica Neue"'><o:p></o:p></span></p><div><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Helvetica Neue"'><o:p> </o:p></span></p></div><div><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Helvetica Neue"'><o:p> </o:p></span></p></div></div><div><div><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Helvetica Neue"'><o:p> </o:p></span></p></div><div><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Helvetica Neue"'> <o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Helvetica Neue"'><o:p> </o:p></span></p></div></div><div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='font-size:9.0pt;font-family:"Helvetica",sans-serif'>I want to reintroduce some of what we learned about Vickrey Auctions in our long discussions -- and why they are a trusted method of auctions among players large and small and with an array of resources. I think it is the very best way to ensure that smaller parties can prevail from time to time, and that the Global South can obtain a share of new gTLDs. </span><span style='font-size:9.0pt;font-family:"Helvetica Neue"'><o:p></o:p></span></p><div><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Helvetica Neue"'><o:p> </o:p></span></p></div><div><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Helvetica Neue"'><o:p> </o:p></span></p></div></div><div><div><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Helvetica Neue"'><o:p> </o:p></span></p></div><div><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Helvetica Neue"'> <o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Helvetica Neue"'><o:p> </o:p></span></p></div></div><div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='font-size:9.0pt;font-family:"Helvetica",sans-serif'>Best, Kathy</span><span style='font-size:9.0pt;font-family:"Helvetica Neue"'><o:p></o:p></span></p><div><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Helvetica Neue"'><o:p> </o:p></span></p></div><div><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Helvetica Neue"'><o:p> </o:p></span></p></div></div><div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='font-size:9.0pt;font-family:"Helvetica",sans-serif'>-----------------------------------------------------------------------------------------------------------------------------</span><span style='font-size:9.0pt;font-family:"Helvetica Neue"'><o:p></o:p></span></p><div><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Helvetica Neue"'><o:p> </o:p></span></p></div><div><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Helvetica Neue"'><o:p> </o:p></span></p></div></div><div><div><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Helvetica Neue"'><o:p> </o:p></span></p></div><div><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Helvetica Neue"'> <o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Helvetica Neue"'><o:p> </o:p></span></p></div></div><div><h2><span style='font-family:"Helvetica",sans-serif'>What is a Vickrey Auction?</span><span style='font-family:"Helvetica Neue"'><o:p></o:p></span></h2><div><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Helvetica Neue"'><o:p> </o:p></span></p></div><div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='font-size:9.0pt;font-family:"Helvetica Neue"'><a href="https://urldefense.com/v3/__https:/corporatefinanceinstitute.com/resources/knowledge/other/vickrey-auction/__;!!N14HnBHF!owM79hXrIldCESZnBUdA6FpA7CuFv2fr6Q6QHzhAgMoYrXoCxFqRe6V5LVNMOZQ2c9sc%24"><span style='font-family:"Helvetica",sans-serif'>https://corporatefinanceinstitute.com/resources/knowledge/other/vickrey-auction/</span></a><o:p></o:p></span></p><div><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Helvetica Neue"'><o:p> </o:p></span></p></div><div><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Helvetica Neue"'><o:p> </o:p></span></p></div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='font-size:9.0pt;font-family:"Helvetica",sans-serif'>A Vickrey auction is a sealed-bid auction where bidders submit bids without knowing the bids of other people. However, as opposed to other sealed-bid auctions, the price paid is the second-highest bid price and not the winning bid price. The Vickrey auction was named after William Vickrey, a Canadian who won the 1996 Nobel Prize in Economics for his research on </span><span style='font-size:9.0pt;font-family:"Helvetica Neue"'><a href="https://urldefensecom/v3/__https:/corporatefinanceinstitute.com/resources/knowledge/finance/asymmetric-information/__;!!N14HnBHF!owM79hXrIldCESZnBUdA6FpA7CuFv2fr6Q6QHzhAgMoYrXoCxFqRe6V5LVNMOdllQwyz%24"><span style='font-family:"Helvetica",sans-serif'>asymmetric information</span></a></span><span style='font-size:9.0pt;font-family:"Helvetica",sans-serif'> in economics.</span><span style='font-size:9.0pt;font-family:"Helvetica Neue"'><o:p></o:p></span></p><div><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Helvetica Neue"'><o:p> </o:p></span></p></div><div><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Helvetica Neue"'><o:p> </o:p></span></p></div></div><h3><span style='font-family:"Helvetica",sans-serif'>Understanding a Vickrey Auction</span><span style='font-family:"Helvetica Neue"'><o:p></o:p></span></h3><div><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Helvetica Neue"'><o:p> </o:p></span></p></div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='font-size:9.0pt;font-family:"Helvetica",sans-serif'>In a Vickrey auction, the individual is bidding their true value and are not trying to assess what everyone else is going to bid. Therefore, in a Vickrey auction, the individual is bidding the maximum amount they are willing to pay and are not disadvantaged by it.</span><span style='font-size:9.0pt;font-family:"Helvetica Neue"'><o:p></o:p></span></p><div><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Helvetica Neue"'><o:p> </o:p></span></p></div><div><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Helvetica Neue"'><o:p> </o:p></span></p></div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='font-size:9.0pt;font-family:"Helvetica",sans-serif'>By utilizing the </span><span style='font-size:9.0pt;font-family:"Helvetica Neue"'><a href="https://urldefense.com/v3/__https:/www.researchgate.net/publication/228296863_How_Good_is_the_Generalized_Second-Price_Mechanism__;!!N14HnBHF!owM79hXrIldCESZnBUdA6FpA7CuFv2fr6Q6QHzhAgMoYrXoCxFqRe6V5LVNMOS7ZLYJt%24"><span style='font-family:"Helvetica",sans-serif'>second-price mechanism</span></a></span><span style='font-size:9.0pt;font-family:"Helvetica",sans-serif'> in a Vickrey auction, individuals bid truthfully – individuals are motivated to bid their maximum value because the individual understands that if their bid wins, they will only need to pay the second-highest bid value.</span><span style='font-size:9.0pt;font-family:"Helvetica Neue"'><o:p></o:p></span></p><div><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Helvetica Neue"'><o:p> </o:p></span></p></div><div><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Helvetica Neue"'><o:p> </o:p></span></p></div><div><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Helvetica Neue"'><o:p> </o:p></span></p></div><div><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Helvetica Neue"'> <o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Helvetica Neue"'><o:p> </o:p></span></p></div></div><div><div><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Helvetica Neue"'><o:p> </o:p></span></p></div><div><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Helvetica Neue"'> <o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Helvetica Neue"'><o:p> </o:p></span></p></div></div></div></blockquote></div><p class=MsoNormal>_______________________________________________<br>Gnso-newgtld-wg mailing list<br><a href="mailto:Gnso-newgtld-wg@icann.org">Gnso-newgtld-wg@icann.org</a><br><a href="https://mm.icann.org/mailman/listinfo/gnso-newgtld-wg">https://mm.icann.org/mailman/listinfo/gnso-newgtld-wg</a><br>_______________________________________________<br>By submitting your personal data, you consent to the processing of your personal data for purposes of subscribing to this mailing list accordance with the ICANN Privacy Policy (<a href="https://www.icann.org/privacy/policy">https://www.icann.org/privacy/policy</a>) and the website Terms of Service (<a href="https://www.icann.org/privacy/tos">https://www.icann.org/privacy/tos</a>). You can visit the Mailman link above to change your membership status or configuration, including unsubscribing, setting digest-style delivery or disabling delivery altogether (e.g., for a vacation), and so on.<o:p></o:p></p></div></blockquote></div><p class=MsoNormal><o:p> </o:p></p></div></div></body></html>