The for assigning scarce frequency band is inefficient as there is a strictly positive probability that frequency will be assigned to the less efficient firm.

Related MCQs

• In _ the government fails to extract all the rents associated with giving away the frequency band to the private sector.
• The firm with the higher market share under incompatibility earns _ under incompatibility whereas the firm with the smaller market share under incompatibility earns _ under compatibility.
• The price charged by a monopoly hardware firm .
• Suppose that all technologies have the same duration. Then the frequency of technology revolutions (or new-technology adoption), denoted by f is
•                             _ network effects arise when there are "at least two different customer groups that are interdependent, and the utility of at least one group grows as the other group(s) grow".
• When there are two software industries, each producing brand-specific software, an increase in the degree of compatibility of the A- machine with the software written for the B- machine,