Auctions with a profit sharing contract

► Auction of a resource, e.g., spectrum license, oil and gas drilling rights, etc. ► Two forms of payment are considered: (i) the winner makes a one-time payment; (ii) an initial payment plus a profit sharing contract (PSC). ► We show that there are economic reasons to prefer a PSC. ► Robust revenue ranking of different PSCs independent of the utility function. ► Very general result.