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Implications of dynamic spectrum management for regulation

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  • Basaure, Arturo
  • Marianov, Vladimir
  • Paredes, Ricardo

Abstract

The Coase theorem suggests that a regulatory scheme, which clearly defines spectrum property rights and allows transactions between participants, induces an optimal spectrum assignment. This paper argues that the conditions required by Coase are gradually achieved by the introduction of Dynamic Spectrum Management (DSM), which enables a dynamic reassignment of spectrum bands at different times and places. DSM reduces the costs associated with spectrum transactions and thus provides an opportunity to enhance efficiency through voluntary transactions. This study analyzes the factors affecting the benefits of a regulatory scheme allowing transactions, compares and quantifies the potential gains associated with different spectrum regimes by employing agent-based simulations and suggests policy implications for spectrum regulation.

Suggested Citation

  • Basaure, Arturo & Marianov, Vladimir & Paredes, Ricardo, 2015. "Implications of dynamic spectrum management for regulation," Telecommunications Policy, Elsevier, vol. 39(7), pages 563-579.
    • Handle: RePEc:eee:telpol:v:39:y:2015:i:7:p:563-579
    DOI: 10.1016/j.telpol.2014.07.001
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    1. Basaure, Arturo & Suomi, Henna & Hämmäinen, Heikki, 2016. "Transaction vs. switching costs—Comparison of three core mechanisms for mobile markets," Telecommunications Policy, Elsevier, vol. 40(6), pages 545-566.
    2. Mustonen, Miia & Matinmikko, Marja & Holland, Oliver & Roberson, Dennis, 2017. "Process model for recent spectrum sharing concepts in policy making," Telecommunications Policy, Elsevier, vol. 41(5), pages 391-404.
    3. Song, Hee Seok & Kim, Taewan & Kim, Taehan, 2017. "The impact of spectrum policies on the secondary spectrum market: A system dynamics approach," Telecommunications Policy, Elsevier, vol. 41(5), pages 460-472.

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