be permitted. The allocation of these portions should be implemented by means of market forces. The spectrum owners should be able to trade these portions in secondary markets. Alternatively, the spectrum owners would be able to use their bands in any way they want through any technology they prefer (service and technology neutrality). Although the spectrum property rights model advocates exclusive allocation of transmission rights, it is not the same as a licensed regime. The main difference is the service and technology neutrality advocated in the spectrum property rights approach, as opposed to strict requirements on services and communications technologies inherent in licensed governance regimes. The basic idea of spectrum property rights was first proposed by Leo Herzel in 1951, who was a law student at the time, preparing a critique of the US FCC policies in spectrum management. Ronald Coase, a Nobel Prize–winning economist, championed the idea of auctioning off spectrum rights as a superior alternative to the status quo in 1959. Coase argued that, though initial distributions may affect matters, property rights in a frequency will lead to the most efficient usage thereof. When he first presented his vision to the FCC, he was asked whether he was making a joke. The supporters of the spectrum property rights model argue that such a management scheme would potentially promote innovation and more efficient use of spectrum resources, as the spectrum owners would potentially want to economize on their resources. The spectrum property rights model is often critiqued for potentially leading to artificial scarcity and the hold-up problem. The hold-up problem refers to the difficulty in aggregation of the spectrum resources (which would be required for high bandwidth applications), as the individual spectrum owners could ask for very high compensation in return for their contribution. Since spectrum is a scarce finite good, there is a perverse incentive to not use it at all. Participants and existing spectrum owners in the spectrum market can preemptively buy spectrum, then warehouse it to prevent existing or newcomer competitors from utilizing it. The existing spectrum owner's official plans for this warehoused spectrum would be save it for an unknown future use, and therefore not utilize it at all for the foreseeable future. In a partial or incomplete "spectrum as property" regulatory regime, incumbent and grandfathered owners who obtained spectrum under the old cause and merit policy, can obtain windfalls in selling the spectrum they