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Full-Text Articles in Behavioral Economics
Efficient Relocation Of Spectrum Incumbents, Peter Cramton, Evan Kwerel, John Williams
Efficient Relocation Of Spectrum Incumbents, Peter Cramton, Evan Kwerel, John Williams
Peter Cramton
Changes in technologies and in consumer demands have made prior radio spectrum allocations far from efficient. To address this problem the FCC has recently reallocated spectrum for more flexible use in bands that are partially occupied by incumbent license holders. Often, it is necessary for the new license holder to relocate incumbents to make efficient use of the spectrum. Regulations structuring the negotiation between incumbent and new entrant can promote efficiency. In particular, giving the new entrant the right to move the incumbent with compensation can reduce negotiation costs and promote efficiency when there is private information about spectrum values …