What Nobel to Tirole means for FCC net neutrality rulemaking: Heed the wisdom and experience of two-sided markets

[Commentary] The Nobel Prize in Economics was awarded to Frenchman Jean Tirole “for his analysis of market power and regulation.”

In their explanation of the award, the Nobel Committee observed, “no other scholar has done more to enhance our understanding of industrial organizations in general, and of optimal policy interventions in particular.” Tirole’s work is important mostly for the ways it helps us understand platform firms and markets, not because it can give precise answers to firms or regulators. This Nobel Prize to Jean Tirole is a timely reminder to the Federal Communications Commission to avoid the danger of regulatory capture. The FCC should look at the evidence and keep in mind the robust academic literature which can help it understand that an open Internet is something that happens on its own, not through regulation.