EconPapers    
Economics at your fingertips  
 

Optimal Abolition of FCC Spectrum Allocation

Thomas Hazlett

Journal of Economic Perspectives, 2008, vol. 22, issue 1, 103-128

Abstract: Ronald Coase based his 1959 call for spectrum markets on theoretical conjecture. Today abundant evidence supports his case. Targeted liberalization in cellular markets, as contrasted with regulatory planning of the digital TV transition and other traditional policies, suggest enormous efficiency gains are available from wider use of "the price system." With exclusive frequency rights assigned to owners, markets widely reconfigure spectrum use, coordinating complex spectrum sharing. Resulting social gains include increased consumer surplus from enhanced technological innovation and wireless service competition. A social bonus arrives in the benefits associated with wider scope for free speech. Yet, the administrative allocation system continues to distribute rents and garner political support. Liberal reforms, in contrast, produce large but broadly dispersed efficiency gains and are undersupplied. This paper proposes an incremental extension of property rights in spectrum to move beyond the current rent-seeking equilibrium, eliminating the Federal Communications Commission's centralized spectrum allocation process and, with it, an "attractive nuisance" generating anticonsumer outcomes.

Date: 2008
Note: DOI: 10.1257/jep.22.1.103
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14)

Downloads: (external link)
http://www.aeaweb.org/articles.php?doi=10.1257/jep.22.1.103 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aea:jecper:v:22:y:2008:i:1:p:103-128

Ordering information: This journal article can be ordered from
https://www.aeaweb.org/journals/subscriptions

Access Statistics for this article

Journal of Economic Perspectives is currently edited by Enrico Moretti

More articles in Journal of Economic Perspectives from American Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Michael P. Albert ().

 
Page updated 2025-03-31
Handle: RePEc:aea:jecper:v:22:y:2008:i:1:p:103-128