OSP Working Paper #41: Enhancing Spectrum's Value Through Market-informed Congestion Etiquettes

FCC OSP Working Paper Series Working Paper 41

35 Pages Posted: 4 Mar 2008  

Mark Bykowsky

Federal Communications Commission (FCC)

Kenneth R. Carter

CloudFlare; Google, Inc.; WIK - Consult GMBH; Federal Communications Commissio; Columbia Institute for Tele-Information

Mark Olson

George Mason University - Interdisciplinary Center for Economic Science (ICES); George Mason University - Department of Economics

William W. Sharkey

Federal Communications Commission (FCC)

Date Written: Feburary 29 2008

Abstract

This paper evaluates the ability of different wireless spectrum congestion etiquettes to promote the efficient use of wireless spectrum in the presence of licensed and unlicensed operations. Under the examined environment, theory predicts that society leaves half of the value it can receive from spectrum "on the table." One new approach utilizes various types of user information to address the inefficient use problem. The superiority of this new class of etiquette is established both in theory and by experimental results. Assuming a close similarity between the naturally occurring environment and the experimental one, analysis reveals that the average efficiency of the existing etiquette employed in most unlicensed equipment is 42%. In comparison, experimental analysis reveals that the average efficiency of one market-informed etiquette - the Informed Greedy Algorithm - is 70%. These results form the factual basis for generating an entirely new type of spectrum allocation wherein a given band of spectrum is treated as a common pool resource in the absence of excessive spectrum congestion, but is treated as an excludable private good in the presence of such congestion

Keywords: FCC, Spectrum, Unlicensed, Experimental Economics

Suggested Citation

Bykowsky, Mark and Carter, Kenneth R. and Olson, Mark and Sharkey, William W., OSP Working Paper #41: Enhancing Spectrum's Value Through Market-informed Congestion Etiquettes (Feburary 29 2008). Available at SSRN: https://ssrn.com/abstract=1088707

Mark Bykowsky (Contact Author)

Federal Communications Commission (FCC) ( email )

445 12th Street SW
Rm. TW-B204
Washington, DC 20554
United States

Kenneth R. Carter

CloudFlare ( email )

665 Third Street
San Francisco, CA 94107
United States

Google, Inc. ( email )

1600 Amphitheatre Parkway
Mountain View, CA 94043
United States

HOME PAGE: http://www.google.com

WIK - Consult GMBH ( email )

Rhoendorfer Str. 68
Bad Honnef, D53604
Germany
49222492250 (Phone)
49222492252224 (Fax)

HOME PAGE: http://www.wik-consult.com/index_e.htm

Federal Communications Commissio

445 12th St. S.W.
Wahsington, DC 20554
United States
202418-2030 (Phone)
2024182807 (Fax)

HOME PAGE: http://www.fcc.gov/osp

Columbia Institute for Tele-Information

3022 BROADWAY
Suite 1A
NEW YORK, NY 10027
United States
2128544222 (Phone)
2128541471 (Fax)

HOME PAGE: http://www.citi.columbia.edu/krc17/

Mark A. Olson

George Mason University - Interdisciplinary Center for Economic Science (ICES)

400P Truland Building
George Mason University
Fairfax, VA 22030
United States

George Mason University - Department of Economics

4400 University Drive
Fairfax, VA 22030
United States

William W. Sharkey

Federal Communications Commission (FCC) ( email )

Rm. TW-B204
Washington, DC 20554
United States
202-418-2743 (Phone)
202-418-1413 (Fax)

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