Educate the FCC on Economics

[Commentary] Four key economic issues facing the FCC as it considers open Internet rules: 1) The implications of possible market failures that might limit innovation in applications complementary to the network. These might include the transaction costs of contracting, spillover benefits of applications innovation, and perhaps the market power of Internet service providers or applications providers. 2) Evaluating the social welfare effects of price discrimination on both sides of two-sided platforms. How do these effects depend on the extent to which mobile Internet service substitutes for fixed service for different types of customers? Or on the number of fixed and wireless providers available in a region? 3) Ensuring adequate incentives for investment and innovation in the network - or the platforms, if wireless and wireline service are viewed as imperfect substitutes. 4) Providing incentives for efficient network operation, perhaps through congestion pricing or network management.