Wednesday, June 25, 2008

Washington Week in Review


I feel obliged to write about my experience as an intern for the Media & Democracy Coalition here in Washington DC. This wasn't my first instinct, given that policy is not my area of expertise, and so I imagined that I'd have more to gain from and little to add to the online conversation about media policy. But since this is a fairly unique opportunity for a media scholar to see how the sausage gets made (is it me or is this metaphor becoming more and more popular?), I thought I'd write about it, albeit from the perspective of an under-informed outsider.

Today, I attended a meeting put on my the Media Access Project with two representatives of the presidential candidates, a representative from Skype, and one from AT&T. They talked about what the next administration would do regarding telecom policy in the next 4 years. For the most part, there were no surprises. I was reminded of everything that frustrates me about political discussion. You have two sides of an ideological divide stating and re-stating their beliefs on one central issue: what actions do legislators and businesses take in order to bring about the broadest benefits for all? One side privileges government regulation. The other privileges unfettered markets. Both of them speak in familiar generalities. When they do recognize that regulation might be appropriate for some circumstances and not for others, they don't talk about the attributes of that circumstance (say, the rate at which people adopt a technology, or the rate at which the cost of a product falls). Instead, they point to the fact that innovation occurred after a certain policy was enacted. One side interprets the innovation as an acceptable level while the other sees it as less than what could have been under a different policy. In the real world situations that they're comparing, they cannot make logical claims about causality between policy and innovation, but that doesn't stop them from doing so.

The whole discussion seems like posturing, just a way of publicly declaring, yet again, that the individuals in question (Obama, McCain, and their surrogates) stand where you would imagine them to stand on the issues. This kind of public posturing isn't without value. In a representative democracy, citizens need to be familiar with candidates so that they can make voting decisions based on something substantive. But is that all there is to such talks? Posturing in public, and decisions made to placate the wealthiest players behind closed doors? No.

I think that the answers to the questions being debated by these two sides can be found using behavioral media studies and behavioral economics. You could say, definitively, whether or not Skype was in direct competition with Verizon (and therefore deserving of the same kinds of regulation as Verizon) by finding out if a sample group of consumers acted as though the goods were substitutable given what they are bundled with (Skype with internet access, Verizon with cable TV and internet at a higher price). If they treat it as a substitutable good at a certain price, then it should be regulated like a service provider when sold below that price level.

You could see if regulation or deregulation of a communications market (be it at the application level or the equipment/backbone level) results in more innovation or less innovation by creating two parallel online environments where avatars are inclined to gain some resource (virtual $) and need to communicate with other avatars in order to compete or cooperate with them to achieve their goals. One of the environments has regulated communications competition and the other does not. Wait a few months, give the providers of the communications a chance to innovate or fail to innovate, and compare the results.

It wouldn't be prohibitively costly to run such studies. A few thousand dollars would get you properly motivated subjects and the environments needed to conduct the studies. You could say that parties with certain interests will fund certain studies that reinforce their stance on the matter (which has little to do with what is empirically true in terms of consumer behavior). This might have been true at one point. I wouldn't argue that, historically, behavioral economic studies had limited impact on policy and the everyday reality of businesses and consumers. But when the cost of conducting such experiments falls, along with the cost of disseminating transparent results and the cost of duplicating experiments, it becomes harder to propagate a lie about consumer behavior.

I'm not certain of this. Its just a hunch that came to me as I was listening to the candidates' proxies debate (it could've just as easily been telecom lobbyists on one side and NGOs and non-profits on the other). Information on behavior gets out there. People judge whether or not it is accurate, and if the results are really important to them (if they were trying to decide if a de-regulated biotech industry would come up w/ a cure for their cancer any faster than a regulated one), then they won't care about free market or socially conscious ideology. They'll care about accurate predictions and repeatable results. I'm placing my faith in the openness of information and lowering of barriers that the internet allows for. I'm assuming that this openness will somehow prevent politicians and businesspeople from propagating false information about behavior, that openness will make it so hard to maintain a lie that it will be easier to just work harder, honestly, to achieve your goals. People will do so not out of any moral inclination, but just b/c it'll be easier. Perhaps this faith is misplaced, but it seems like the best way to maintain my optimism in this town.

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