Date and Time: February 26th 2016, 10:00 - 11:00 am
Room: A101 in the Economics Building (Museum)
We develop a model of scarce renewable resources to study the problem of the commons. Our model formulation divers from the existing literature in that it assumes the use of the commons to be stochastic in nature. One example is microwave spectrum fro mobile and wireless communications.
We investigate three mechanisms of resource allocation: free usage, the exclusive franchise, and a regulated monopoly. We show that the welfare tradeoff among these three mechanisms depends on the characteristics of the commons and their usage patterns. In particular, we find that property rights are not always the best solution. We then make three extensions that apply to spectrum allocations.
About the speaker
Jiong Gon is associate professor of economics at the University of Business and Economics (UIBE), located in Beijing. His research areas are microeconomics, industrial organization, antitrust and regulatory economics, and international trade. Prof. Gong graduated from the University of Texas at Austin with a Ph.D. degree in economics in 1995.