Policy Studies

How to reduce transaction costs in spectrum markets

Key Points

The efficiency of spectrum markets is hampered by transaction costs which are often the result of overly restrictive FCC policy
Transaction costs can be lowered by setting initial license areas that are relatively large and based on natural population centers
Innovative market designs can also decrease transaction costs by making it easier for potential spectrum buyers and sellers to find each other and agree on a price

 “The agency [FCC] should approximate initial conditions that will create flexibility and lower transaction costs so that productive outcomes can prevail in the long run.”

Press release – R Street Policy Report: Transaction Costs Are Killing the Spectrum Market

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