EconPapers    
Economics at your fingertips  
 

The Economic Effects of Spectrum Trading

Robert Leese, Paul Levine () and Neil Rickman
Additional contact information
Robert Leese: University of Oxford and Smith Institute

No 123, Royal Economic Society Annual Conference 2002 from Royal Economic Society

Abstract: We consider a model in which Cournot-Nash oligopolistic service providers are able to trade radio spectrum licences, subject to interference constraints. The terms of trade are endogenised through Nash bargaining. When the providers are in the same (geographical) market, the incentive to trade is due to cost differences; when they are in separate markets, differential demand conditions can also stimulate trade. We show that trade can enhance the productive efficiency of service provision (by concentrating production in low cost firms) but the resulting service consumer prices may have negative welfare implications. We then present numerical results from a program designed to simulate trading scenarios. these results illustrate a number of outcomes of allowing licence trades. We discuss a number of applications and extensions for our model and the relevance of our results for current government consultations on spectrum trading.

Date: 2002-08-29
New Economics Papers: this item is included in nep-mic
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://repec.org/res2002/Leese.pdf full text

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:ecj:ac2002:123

Access Statistics for this paper

More papers in Royal Economic Society Annual Conference 2002 from Royal Economic Society Contact information at EDIRC.
Bibliographic data for series maintained by Christopher F. Baum ().

 
Page updated 2025-03-22
Handle: RePEc:ecj:ac2002:123