A broadcast license is a type of spectrum license granting the licensee permission to use a portion of the radio frequency spectrum in a given geographical area for broadcasting purposes. The licenses generally include restrictions, which vary from band to band. Spectrum may be divided according to use. As indicated in a graph from the National Telecommunications and Information Administration (NTIA), frequency allocations may be represented by different types of services which vary in size. Many options exist when applying for a broadcast license; the FCC determines how much spectrum to allot to licensees in a given band, according to what is needed for the service in question. The determination of frequencies used by licensees is done through frequency allocation, which in the United States is specified by the FCC in a table of allotments. The FCC is authorized to regulate spectrum access for private and government uses; however, the National Telecommunications and Information Administration of the Commerce Department allocates spectrum for use by the federal government (including the military). In some cases (e.g. CB radio), the public may use spectrum without a license. Commercial users (such as television, AM/FM radio, and some types of two-way communications) will receive an FCC assignment to a portion of spectrum, which may be a single frequency or a band of frequencies. In issuing broadcast licenses the FCC relies on "comparative hearings", whereby the most qualified user will be granted use of the spectrum to best serve the public interest; researchers have pointed out that this procedure favors incumbents. Violation of the terms of a license (due to technical fault or illegal content) may result in fines or revocation of the license. Licenses have also been jeopardized by misrepresentation on the part of the holder or failure to keep a public file (in the U.S. and Canada). Unlicensed broadcasting refers to legal devices allowed to transmit at low power without a license and pirate stations, which violate the law. Economics In the U.S. broadcast licenses were issued for only a nominal payment, but economist Ronald Coase challenged the FCC's approach. Coase proposed that, as for other resources (land, metal, etc.), the market should regulate the use of radio spectrum. This proposition is based on the Coase theorem: with well-defined property rights, the free market will allocate resources to their most efficient use if transaction costs are low. Coase's theory indicated that broadcast licenses in