Economics at the FCC: 2007–2008

In any given year, the Federal Communications Commission confronts many issues of interest to economists. This paper summarizes four issues of interest during the last year: Spectrum Auctions, Media Ownership, Quality-Adjusted Cable Prices, and Leased Access. It highlights the role that economic analysis played in each and identifies areas where further research would be fruitful. This article was drafted while the first author was Chief Economist at the Federal Communications Commission. The opinions expressed here are solely those of the authors and do not necessarily reflect those of the Federal Communications Commission, its Commissioners, or its staff. We would like to thank Larry White and Tracy Waldon for helpful comments.     

The Year in Review: Economics at the Antitrust Division 2013–2014

During 2013–2014, the Antitrust Division of the U.S. Department of Justice brought a wide range of matters to successful conclusions. The three matters that are discussed below demonstrate the diverse set of issues that the division examines every year.     

Economics at the FCC 2018–2019: Competition,Broadband Deployment,and Transaction Review

Review of Industrial Organization - The U.S. Federal Communications Commission is responsible for regulation in the communications marketplace and for management of the nation’s non-federal...     

The Year in Economics at the FCC, 2010–11: Protecting Competition Online

The past year in economics at the Federal Communications Commission focused on protecting competition in developing online markets. Our review discusses important economic issues that are raised by the FCC’s Open Internet rulemaking (which is commonly referred to as “net neutrality”) and its review of Comcast’s programming joint venture with General Electric’s NBC Universal affiliate. The Open Internet rule focused on established online markets, while the Comcast/NBCU transaction addressed nascent competition online along with competition in video programming and distribution offline.     

Economics at the FCC, 2017–2018: Internet Freedom,International Broadband Pricing Comparisons,and a New Office of Economics and Analytics

The Federal Communications Commission’s (FCC’s) current strategic plan lists four priority goals: closing the digital divide; promoting innovation; protecting consumers and public safety; and reforming the FCC’s processes. Economists at the FCC contribute toward the realization of each of these goals, through analysis of the nature and significance of the underlying problems that regulations are intended to solve, as well as assessments of alternative solutions. Three major FCC initiatives demonstrate the role that economic analysis played in Commission decisions in 2017–2018: the Restoring Internet Freedom Order; the new hedonic pricing model that was used in the International Broadband Data Report; and the order that reorganized Commission economists into the Office of Economics and Analytics.     

Economics at the FCC, 2016–2017: Auction Designs for Spectrum Repurposing and Universal Service Subsidies

The Federal Communications Commission is responsible for federal regulation in the telecommunications and electronic media sectors, and for management of the nation’s non-federal radio frequency spectrum. During the past year, Commission economists contributed to the agency’s ongoing efforts to use market-based mechanisms—such as auctions—to allocate spectrum and distribute universal service subsidies efficiently. This includes repurposing broadcast television spectrum for more efficient use by wireless service providers through the recently concluded Broadcast Incentive Auction and structuring auction mechanisms to promote efficient allocation of universal service subsidies for the increased build-out of mobile wireless and fixed broadband service in unserved and underserved areas.     

The Year in Review: Economics at the Antitrust Division 2012–2013

During 2012–2013, the Antitrust Division brought a wide range of litigated matters to successful conclusions. Litigation puts the economic analysis of an antitrust investigation to the ultimate test, and the Division continues to rely on its first-rate economic staff to help explain a wide range of matters to the courts. The four cases discussed below demonstrate the diverse set of issues the Division examines every year.     

Economics at DG Competition, 2010–2011

This paper discusses a selection of cases and important policy developments in the enforcement activities of the Directorate General for Competition at the European Commission during the past year (2010–2011).     

Economics at the FCC, 2011–2012: Spectrum Incentive Auctions, Universal Service and Intercarrier Compensation Reform, and Mergers

The past year in economics at the Federal Communications Commission covered a broad range of topics in telecommunications policy. This paper highlights the economic issues that are addressed in the following key areas: spectrum management, universal service and intercarrier compensation reform, and merger review. In spectrum management, the FCC received congressional authority to implement an ??incentive auction?? to repurpose television broadcasting spectrum into flexible-use licenses that will be suitable for mobile wireless service providers. We discuss some important issues in designing the auction. We next address some aspects of the FCC??s comprehensive reforms of intercarrier compensation, which mainly involves call termination rates, and of universal service. Finally, we discuss the economic analysis of two major mergers: AT&T-T-Mobile, which the FCC staff recommended should be referred to an administrative hearing, and Level 3/Global Crossing, which was cleared with no conditions.     

Economics at DG Competition, 2009–2010

This paper discusses a selection of cases and important policy developments in the enforcement activities of the Directorate General for Competition at the European Commission during the past year (2009–2010).     

Economics at DG Competition, 2011–2012

This paper discusses a selection of cases and important policy developments in the enforcement activities of the Directorate General for Competition at the European Commission during the past year (2011?C2012). In particular, it illustrates the importance of competition policy in the area of financial markets based on the Deutsche B?rse/NYSE Euronext merger decision, discusses the role that the analysis of innovation can play in merger cases based on recent transactions in the hard disk drive industry, and illustrates the rising role of economic analysis in European state aid control.     

Economics at the Antitrust Division: 2017–2018

This article describes some of the work of Antitrust Division economists over the past year, with a focus on modeling. It begins by illustrating the mapping from evidence to prediction using tools for assessing the effects of mergers using Bertrand, Cournot, and auction models. It then turns to two hot topics in competition policy: the implications of claims of increasing margins for merger enforcement and the validity of claims of increasing concentration. Finally, it considers how mergers affect prices in bargaining models.     

Economics at the FCC 2020–21: Closing the Connectivity Gap,COVID-19 and Telehealth,Spectrum Auctions,Communications Marketplace Report,and Economic Research

Review of Industrial Organization - The U.S. Federal Communications Commission is responsible for regulation in the communications marketplace and for management of the nation’s non-federal...     

The Year in Review: Economics at the Antitrust Division, 2018–2019

Review of Industrial Organization - This article highlights the economic analysis that underlay certain enforcement efforts of the Antitrust Division over the past year. The Division’s...     

The Year in Review: Economics at the Antitrust Division, 2004–2005

This paper covers the activities of the Economic Analysis Group (EAG), during 2004–2005. It describes the economic analysis undertaken by EAG in several important investigations, appellate matters, and other activities as an advocate for competition.     

The Year in Review: Economics at the Antitrust Division, 2008–2009

This paper covers the activities of the Economic Analysis Group (EAG) of the Antitrust Division, U.S. Department of Justice, during 2008–2009. It describes the economic analysis undertaken by EAG in several important investigations, and in other activities as an advocate for competition.     

The Year in Review: Economics at the Antitrust Division, 2007–2008

This paper covers the activities of the Economic Analysis Group (EAG) of the Antitrust Division, U.S. Department of Justice, during 2007–2008. It describes the economic analysis undertaken by EAG in several important investigations, and in other activities as an advocate for competition. The views in this paper are those of the authors and do not necessarily reflect those of the Antitrust Division.     

The Year in Review: Economics at the Antitrust Division, 2009–2010

This paper covers the activities of the Economic Analysis Group of the Antitrust Division, U.S. Department of Justice, during 2009–2010. It describes the economic analysis undertaken by EAG in several important investigations and other activities as an advocate for competition.