A Response to Steven Crowley at GigaOm…
Posted on byThis past February, we released a paper entitled Wireless Competition After Spectrum Exhaust. As far as we can tell, this paper was the first serious attempt to model the effect of spectrum exhaust on mobile wireless competition. We found that the addition of a binding capacity constraint (i.e., spectrum exhaust) to the standard Cournot model of competition reveals that that fewer—not more—firms would lead to lower price, more investment, and more jobs. Our paper, not unexpectedly, raised a few eyebrows. (For a CliffsNotes summary of our paper, see my February 8, 2012 blog post.) This weekend, Steven Crowley at GigaOm, Continue Reading »