Title: | Evolving Technologies and Standards Regulation |
Authors: | Cabral, Luis Salant, David |
Issue Date: | Apr-2008 |
Series/Report no.: | EC-08-16 |
Abstract: | Spectrum regulation necessarily involves some regulation of the technology that licensees can use. One commonly stated assertion is that a mandated single standard, the solution followed by the EU for 2G wireless, is a successful model for spectrum regulation. We argue that a single standard leads to a free riding problem, and thus to a significant decrease in marginal incentives for R&D investment. In this context, keeping two separate standards may be a necessary evil to sustain a high level of R&D expenditures. We also provide conditions such that a non-standardization equilibrium is better for consumers and for society as a whole. |
URI: | http://hdl.handle.net/2451/26025 |
Appears in Collections: | Economics Working Papers |
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