>"Misallocation of scarce resources too often deprives users of them even as others waste their supply. Well-designed markets can overcome such problems by enabling voluntary transactions that allow existing users to retain their allotments while enabling higher-value uses."

The resource was not water but radio spectrum – the electromagnetic frequencies used for wireless phone calls, smartphone data, and emergency communications. Demand for spectrum had grown as more people streamed movies, placed video calls, and used mobile apps. But because spectrum that would have been ideal for smartphone apps was taken up by a fragmented industry of TV broadcasters, there wasn’t enough bandwidth for mobile uses.