That's correct, the price at the end is theoretically the same, but the public doesn't know about the high bidder's price in the second option. The second optio

That's correct, the price at the end is theoretically the same, but the public doesn't know about the high bidder's price in the second option. The second option (or just a regular auction) just saves you some embarrassment, which is nothing in the end, but in the political world embarrassment is not nothing. The other benefit (for the seller) mentioned was that bidders get a social signal that other companies think the license is apparently worth the current price, which could pressure the price upwards. Versus Vickrey Auctions where it's a completely blind bid. If you're curious, if you google "undercover economist vickrey auction uk" you may or may not find a ctrl+f searchable pdf where you can read this section yourself.