Resumen de An oligopoly model for analyzing and evaluating (Re)-Assignments of spectrum licenses

Simon Loertscher, Leslie M. Marx

• The Communications Act requires the Federal Communications Commission to assess whether proposed spectrum license transactions serve the public interest, convenience, and necessity. We review the FCC�s implementation of this component of the Act. We provide a tractable economic model of competition among wireless service providers in which spectrum licenses are a cost-reducing input. This model allows us to evaluate the effects of (re-)assigning spectrum licenses on economic outcomes and to define operational measures of �warehousing� licenses. Calibrating the model, we find little evidence of warehousing and that the approved Verizon-T-Mobile-SpectrumCo transaction increased social surplus.