[SubPro-IRT] [Ext] Re: Follow-up: ASP Bid Credit Options

[Rubens Kuhl]

> Em 25 de jun. de 2024, à(s) 11:38, Kristy Buckley <kristy.buckley at icann.org> escreveu:
> 
> Many thanks, Justine, for this comprehensive and thoughtful input--as always. This provides a lot of food for thought which I'm hoping we can discuss during an upcoming IRT session. 
> 
> I'll just speak to the points on the ASP bid credit since I'm not as familiar with auctions overall. I think NERA and ICANN org were assuming that the bid credit for supported applicants would be a fixed, equal credit for all--perhaps something we should be more explicit about in in the slides. 
> 
> NERA has indicated that we can set the fixed ASP bid credit without a "target win rate". I'm not sure that having an aspirational target win rate helps us much since the outcome is still an unknown and uncontrolled variable. When we set the bid credit for all supported applicants, we won't know if it is "too high" or "too low" until the results of the auction. And, as you all know, opinions will vary about what is "too high" or "too low". The policy rationale simply said that a bid credit/multiplier or other similar mechanism is intended to "increase the chances" of a supported applicant prevailing. 
> 
> Since not all strings are valued equally, in some cases the set bid credit (equal for all supported applicants) may not make a supported bidder competitive in the auction they participate in. WIthout knowing which strings will be in contention, their market value, or a target win rate, it is possible that the set, fixed bid credit does not make any supported applicants competitive in the ICANN Auctions of Last Resort. It's also possible that it makes many supported applicants very competitive in those auctions, or a mix of both outcomes depending on the auction.
> 
> My understanding is that (even with NERA's expert guidance) setting a fixed bid credit for all supported applicants without a target win rate means that we won't be able to forecast the degree to which the ASP bid credit increases the chances of supported applicants prevailing at ICANN Auctions.

What is said above, for me, guides towards the ASP bid multiplier being preferred to the ASP bid credit. A multiplier makes it easier to the applicant to adapt to different contention set situations. 

The policy allowed for either a credit or a multiplier, and I was neutral among the two until the reasoning you posted. 


Rubens



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