A Proposal for Efficient Use of the Television Spectrum

Abstract

It is widely recognized that broadcast spectrum is utilized inefficiently. The principle technical cause of this inefficiency is inexpensive receiver design. In addition, the economics of the industry are such that users do not pay the opportunity costs of spectrum associated with these receivers. In this paper, I develop an approach that would internalize the spectrum opportunity costs so that consumers will make decisions that are economically more rational in terms of their choice of the program delivery channel.