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    Spectrum Licensing and Flexible Beauty Contest Designs

    Access Status
    Fulltext not available
    Authors
    Madden, Gary
    Bohlin, Erik
    Tran, Thien
    Date
    2013
    Type
    Journal Article
    
    Metadata
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    Citation
    Madden, Gary and Bohlin, Erik and Tran, Thien. 2013. Spectrum Licensing and Flexible Beauty Contest Designs. Annals of Public and Cooperative Economics. 84 (3): pp. 309-321.
    Source Title
    Annals of Public and Cooperative Economics
    DOI
    10.1111/apce.12016
    ISSN
    1370-4788
    URI
    http://hdl.handle.net/20.500.11937/25120
    Collection
    • Curtin Research Publications
    Abstract

    McMillan’s (1995) ‘flexibility’ proposition suggests a testable hypothesis about beauty contests spectrum assignments. Such flexibility purportedly allows regulators to pursue social welfare (network deployment) goals. A separate argument is that more competitive beauty contests enhance the probability of assignment. The study concludes that regulators do indeed focus on societal (network deployment) welfare goals. Initially, consideration is given in the immediate term where licenses are awarded based on operator aftermarket commitments. Subsequently, spectrum package attributes and financial performance obligations, specified in the tender documents, come into play to support the networks spread more widely through the population in a timely manner. Finally, the econometric results suggest that more competitive beauty contests enhance the probability of assignment.

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