Washington — This year’s Nobel Prize in economics has been awarded to two Stanford University professors who came up with the economic model that governments around the world now use to auction spectrum used for everything from broadcast stations to high speed internet. Before Paul Milgrom and Robert Wilson developed a new theory for spectrum auctions to benefit multiple stakeholders, spectrum was largely awarded following hearings on how companies planned to use the spectrum. The FCC started using this model for spectrum auctions after Congress approved competitive bidding for spectrum rights in 1993.
The following can be attributed to Computer & Communications Industry Association President Matt Schruers:
“The discoveries Milgrom and Wilson made decades ago are benefiting people around the world more than most know. Their theories paved the way for spectrum auctions that have helped buyers, sellers and taxpayers. This deployment of spectrum now helps meet the growing demand for internet connectivity — connectivity that is more critical than ever during the pandemic. We are glad to see them getting well-deserved recognition for work that benefits so many people.”