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Two perspectives on trading in radio spectrum usage rights: Coase and Commons compared

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  • LEMSTRA, WOLTER
  • GROENEWEGEN, JOHN
  • DE VRIES, PIET
  • AKALU, RAJEN

Abstract

In this contribution, we address the introduction of private property rights and market trades in the use of the radio frequency spectrum. We discuss the UK case being inspired by the ideas of Coase. We discuss how an appropriate design of property rights and a secondary market would look like and how the developments after the introduction of property rights could be interpreted. Subsequently we present the alternative perspective of Commons to illuminate the implications of a Coasean perspective. It is shown how Coase's focus is on efficiency, whereas in the world of Commons, the societal value is central. We discuss how the two perspectives can contribute to the understanding of the governance of the radio spectrum and conclude with policy recommendations.

Suggested Citation

  • Lemstra, Wolter & Groenewegen, John & De Vries, Piet & Akalu, Rajen, 2015. "Two perspectives on trading in radio spectrum usage rights: Coase and Commons compared," Journal of Institutional Economics, Cambridge University Press, vol. 11(2), pages 437-457, June.
    • Handle: RePEc:cup:jinsec:v:11:y:2015:i:02:p:437-457_00
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