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    Spectrum Licensing, Policy Instruments and Market Entry

    Access Status
    Fulltext not available
    Authors
    Madden, Gary
    Bohlin, E.
    Tran, Thien
    Morey, A.
    Date
    2014
    Type
    Journal Article
    
    Metadata
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    Citation
    Madden, G. and Bohlin, E. and Tran, T. and Morey, A. 2014. Spectrum Licensing, Policy Instruments and Market Entry. Review of Industrial Organization. 44 (3): pp. 277-298.
    Source Title
    Review of Industrial Organization
    DOI
    10.1007/s11151-013-9405-9
    ISSN
    0889938X
    School
    School of Economics and Finance
    URI
    http://hdl.handle.net/20.500.11937/22675
    Collection
    • Curtin Research Publications
    Abstract

    Competition policy attempts to address the potential for market failure by encouraging competition in service markets. Often, in wireless communication service markets, national regulatory authorities seek to encourage entry via the spectrum assignment process. Instruments used include the assignment mode (auction or beauty contest), setting aside licenses and providing bidding (price and quantity) credits for potential entrants and making more licenses (spectrum blocks) available than there are incumbent firms (excess licenses). The empirical analysis assesses the effectiveness of these policy instruments on encouraging entry. The econometric results show that the probability of entry is enhanced by using auction assignments and excess licenses. Furthermore, quantity, but not price, concessions encourage entry.

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