Spectrum Reallocation---Theory, Mechanism Design, and Transition Strategies

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This project proposes a mechanism for spectrum reallocation with the nameof Extended Market Mechanism (EMM) in order to facilitate Pareto-improving and incentive-compatible reallocation (repurposing and reassignment) of spectrum. Under EMM, spectrum may beused by a private party for an indefinite period unless claimed by the government for a compensationspecified by the party using it; each user of a spectrum block is obliged to declare an amount ofcompensation for which the user is willing to transfer the right of using the block (the supply price of theblock). Thus, if an offer is made at a price greater than or equal to the declared compensation, then theuser must give up using the block. Further, the user must pay to the government an annual spectrumusage fee equal to the product of the supply price and a government-chosen fee rate.