Implications of dynamic spectrum management for regulation

Authored by Arturo Basaure, Vladimir Marianov, Ricardo Paredes

Date Published: 2015

DOI: 10.1016/j.telpol.2014.07.001

Sponsors: European Union

Platforms: No platforms listed

Model Documentation: Other Narrative Flow charts

Model Code URLs: Model code not found

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. (C) 2014 Elsevier Ltd. All rights reserved.
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