A fluid description of lower hybrid, whistler and magnetosonic waves is applied to study wave phenomena near the lower hybrid resonance associated with plasma density depletions. The goal is to understand the nature of lower hybrid cavitons and spikelets often associated with transverse ion acceleration events in the auroral ionosphere. Three-dimensional simulations show the ponderomotive force leads to the formation of a density cavity (caviton) in which lower hybrid wave energy is concentrated (spikelet) resulting in a three-dimensional collapse of the configuration. Plasma density depletions of the order of a few percent are shown to greatly modify the homogeneous linear properties of lower hybrid waves and account for many of the observed features of lower hybrid spikelets. ¿ American Geophysical Union 1994