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.

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The lottery system for assigning scarce frequency bands is considered inefficient because it randomly allocates frequencies without considering the efficiency or capability of the firms. This randomness means there's a chance that a less efficient firm could obtain a frequency over a more capable competitor, leading to potentially suboptimal use of the spectrum.

The for Assigning Scarce Frequency Band Is Inefficient as There