models for spectrum allocation: which is most efficient wayne a. leighton francisco marroquín...
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![Page 1: Models for Spectrum Allocation: Which is Most Efficient Wayne A. Leighton Francisco Marroquín University, Guatemala Presentation to the International Telecommunications](https://reader036.vdocuments.us/reader036/viewer/2022062804/56649d495503460f94a25f2c/html5/thumbnails/1.jpg)
Models for Spectrum Allocation: Which is Most Efficient
Wayne A. LeightonFrancisco Marroquín University, Guatemala
Presentation to the International Telecommunications Society
Berlin, GermanySeptember 2004
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Figure 1:MODELS OF SPECTRUM ALLOCATION
Exclusive Use Exclusive Use,With Easements
Commons
More LessExclusivity in Use
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Three perspectives on spectrum policy:
Engineering : Technological advances improve cooperation gain and processing gain.
Law: Is the use of licensed spectrum without the licensee’s permission trespass, nuisance, or something else?
Economics: Efficiency is restricted by overuse as well as underuse. What to do?
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Engineering Issues
• Ultra Wide Band (UWB): a low-power application
• Cognitive Radio: both low- and high-power applications
How is the difference between low- and high-power applications reflected in the rights of licensees?
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Figure 2:LOW-POWER AND HIGH-POWER EASEMENTS
PowerLevel
Time
Threshold
Shaded Bars = Period of Use by LicenseeUnshaded Bars = Period of Non-Use by LicenseeElephants = High-Power Users (e.g., SDR)Flies = Low-Power Users (e.g. UWB)
This figures assumes a defined frequency band and geographic area. Only power and time vary.
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Legal Issues
• Unauthorized use of licensee’s spectrum. Is it trespass? Is it nuisance?
• Trespass: tangible interference with an owner’s possession of land
• Nuisance: tangible interference with an owner’s use and enjoyment of land
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‘If I invade your land with smells and stenches, pollution or electromagnetic radiation, I am no trespasser under traditional law, for I have not interfered with your possession. In such cases, I am liable if at all for interference with your use and enjoyment, that is, for nuisance.’
Dobbs, Dan. 2000. The Law of Torts. Minneapolis: West Group.
Is cognitive radio analogous? Yes and No
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Additional legal issues: which apply?
• Eminent Domain? Probably not. More a regulation than a taking. But remember Oliver Wendell Holmes…
• Adverse Possession? Not really. It is not open and notorious use.
• Privilege? Perhaps. It is forward-looking, and it was applied to aviation.
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Economic Issues: Tragedies of the Commons and Anti-Commons
• Tragedy of the Commons:
Inefficient overuse, due to many ‘owners’ where no one has the right to exclude.
• Tragedy of the Anti-commons:
Inefficient underuse, due to at least two very different causes…
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Causes of the Anti-Commons Tragedy
1. ‘failure’ of licensees to combine resources
Example: UWB
2. failure of government to fully assign rights
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Figure 3:BUCHANAN AND YOON’S VALUE SYMMETRY:
COMMONS AND ANTICOMMONS
Total Value
Number of Excluders Number of Users
1
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1. Balance the ‘tradeoff’ between commons and anti-commons problems.
2. Accept what we cannot change and deal with what we can. (Demsetz)
3. Apply a liability rule. (Posner)
Some solutions:
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1. Balance the use ofcommons and anti-commons
• All commons → large costs associated with the tragedy of the commons
• All exclusive use → large costs associated with the tragedy of the anticommons
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Figure 4:
COST SYMMETRY:COMMONS AND ANTICOMMONS
0 100 %
0 100 %Percent of Resource Held in Commons
Total Cost of Commonsand Anticommons
Cost of Commons
Cost of Anticommons$
$
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2. Accept what we cannot change. That is, avoid the Nirvana fallacy.
• ‘Those who adopt the nirvana viewpoint seek to discover discrepancies between the ideal and the real and if discrepancies are found, they deduce that the real is inefficient.’ Demsetz, 1969.
• Transactions costs as market failure? No
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3. Apply the liability rule
• Property rights are preferable to regulation where voluntary transactions are feasible. (Landes and Posner)
• But what about high transaction costs?
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Some applications:
• WiFi – small geographic areas, low costs of internalizing the externality
• WiMax – large geographic areas, large costs of internalizing the externality
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Recommendation
Employ an allocation model that focuses heavily on exclusive use (best incentives),
but allocate some to commons, especially for uses in which externality is internalized.
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Transition Options
1. The ‘Big Bang’ (Kwerel and Williams)
2. The ‘Really Big Bang’
3. The ‘Expanded Rights’ Model
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1. The Big Bang(by Evan Kwerel and John Williams)
• 434 mghz of spectrum
• Licensees may participate or not
• Participating licensees receive flexibility
• Participating licensees may refuse any bid, or sell and keep the proceeds
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2. The Really Big Bang
• Same as above, applied to all spectrum
• Geographic overlay of site-based licenses
• Same benefits and costs as the Big Bang, only bigger…
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3. The Expanded Rights Model
• All licensees receive flexibility
• Use restrictions limited to technical rules
• Geographic overlay of site-based licenses
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Conclusion
• Legal: Proceed carefully in granting rights to opportunistic use, and recognize precedents.
• Economic: Stress exclusive use, for efficiency and to avoid the tragedy of the commons.
• To avoid the tragedy of the anti-commons, two things are needed: 1. government assignment of rights (flexibility)2. limited application of commons, e.g. in small geographic areas for WiFi applications.