In------------------the government fails to extract all the rents associated with giving away the frequency band to the private sector.

Question

Quizplus · Accepted Answer

In an auction, the government sets a minimum price for the frequency band and then allows private companies to bid against each other. The company that offers the highest bid wins the right to use the frequency band. This system is designed to ensure that the government receives the highest possible price for the frequency band.

In------------------The Government Fails to Extract All the Rents Associated with Giving