• 「ITiP」 Kwon, Y., Lee, J., & Oh, Y. (2010). “Economic and policy implications of spectrum license fee payment methods”. Telecommunications Policy, 34(3), 175-184.

    Lab: information Technology Industry Pathfinder

    Professor: Youngsun Kwon

    Title: Economic and policy implications of spectrum license fee payment methods

    Authors: Youngsun Kwon, Jungsub Lee, Youngkyun Oh

    Journal: Telecommunications Policy

    Publish: 2010


    This paper argues that “Do auctions raise consumer prices?” is a misleading question. License fee payment methods, rather than spectrum assignment methods, are key factors that bring forth different market outcomes in the wireless telecommunication industry. This paper analyzes and discusses the effects of three spectrum license fee payment methods–upfront lump-sum fees, royalties, and profit sharing–on economic efficiency, spectrum supply, and government revenue. Royalties create distortions in product and factor markets but can induce the government to increase spectrum supply and encourage firms’ investments. A caveat is that the analyses are based on the model assuming monopoly market and information certainty


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