Assessing the Efficiency of the Federal Radio Commission's Regulation of Broadcasting

Abstract

The author explores the relative efficiency implications of Federal Radio Commission regulation under the Radio Act of 1927 and a system of spectrum property rights. He examines the technological efficiency achieved by FRC regulation and compares that outcome with a scenario of property rights in broadcast frequencies set forth by Ronald Coase (1959). The author concludes that spectrum property rights would have resulted in more radio service in urban areas and diminished consumer welfare.

Keywords: Coase; Radio Act; Broadcasting; Spectrum; Spectrum Markets; Property Rights

JEL Classification: L51; L96; K23