COMS 401 Lecture Notes - Lecture 3: Ronald Coase, Transaction Cost

• School: University of Calgary
• Department: Communications Studies
• Course: COMS 401
• Professor: Richard Hawkins

Document Summary

Often referred to as the real estate of the air. Some of it is open, some you need permission to use. People realizing we cant just leave this open to people"s use. Markony wanted to monopolize the radio spectrum, thought it was his idea. Nobody officially owns any of the radio waves through the air the basic legal principle behind it. Higher bands- commercial value becomes very high. Scarcity was always a technological issue, never a physical issue. If everyone knew their property rights, plus you had low transaction cost, you will not have to intervene with the market.