J Regul Econ (2011) 39:221–222 DOI 10.1007/s11149-011-9143-6 OBITUARY

Alfred E. Kahn (1917–2010) Timothy J. Tardiff

© Springer Science+Business Media, LLC 2011

Professor Alfred E. (Fred) Kahn was one of the pioneers in modern-day regulation and competition policy. He received his bachelor’s degree from New York University—graduating first in his class at age 18—and his Ph.D. in economics from Yale University. Professor Kahn served the bulk of his academic career at Cornell University, (starting in 1947) where he was the Robert Julius Thorne Professor of Economics (emeritus since 1989) and also served as Department Chairman and the Dean of the College of Arts and Sciences (in which position he once observed that “Dean is to faculty as fire hydrant is to dogs”). He was the author of (1) seven books, including the classic two-volume Economics of Regulation, as well as the more recent trilogy on current issues in regulation— Lessons from Deregulation: Telecommunications and Airlines after the Crunch, Whom the Gods Would Destroy, or How Not to Deregulate, and Letting Go: Deregulating the Process of Deregulation and (2) over 130 articles, many in the leading economic journals, including “The Deregulatory Tar Baby: The Precarious Balance Between Regulation and Deregulation, 1970–2000 and Henceforward,” which appeared in a special 2002 issue of this journal. The economics developed and presented therein harbor a certain richness and worldliness (“political economy”) that are timeless in nature and transcend both the passing of time and the technical transformation of the discipline. Indeed, many of the analyses in the Economics of Regulation anticipated the debates surrounding the implementation of the 1996 Telecommunications Act more than a quarter of a century later. As a result, Professor Kahn’s earlier (as well

Previously, obituaries in published in the JRE have been for deceased members of the Editorial Board. Although Kahn was never a member of the Board his contributions to regulatory economics justify this tribute to his work. Editor. T. J. Tardiff (B) Advanced Analytical Consulting Group, Boston, MA 02110-2477, USA e-mail: [email protected]

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as later) works were cited in important regulatory and court decisions related to that Act. Furthermore, with Fred, it was not just the economics, but his widely admired and unique style of presenting his ideas. Indeed, he once allowed that he valued his advice to the editorial board of the American Heritage Dictionary at least as highly as his economics. Impressive in its own right, Fred’s scholarly achievements were only part of his life’s story. He was also applied his economic principles to real-world problems during several leaves-of-absence from Cornell, including such high-level, government appointments as the Chairman of the New York Public Service Commission, Economic Advisor to the President (Carter) on Inflation, Chairman of the Council on Wage and Price Stability and Chairman of the Civil Aeronautics Board (CAB), among others. In the last of these, Fred achieved legendary status for his role in deregulating the airlines in the US—the economic welfare gains from which have been conservatively estimated at more than $28 billion annually. He never stopped working. He continued to be engaged and an active participant until literally days before his passing in discussions of critical regulatory and competition policy in the industries he had previously served as a regulator. Throughout his career, Fred served as an expert witness and consultant/advisor to Fortune 500 corporations and governments throughout the world. He testified before the US Senate or the House no less than 70 times, as well as in front of US federal and state regulatory authorities and similar agencies in other countries. For example, during the last 5 years of his career, Professor Kahn advised the Canadian government on proper regulation for the telecommunications sector and more important, Canada has taken significant steps towards the regulatory reforms Fred proposed. He also weighed in on the “network neutrality” issue that continues to the subject of intense debate—publishing articles and advising agencies such as the Federal Trade Commission on whether providers of broadband services need to be regulated (apart from the antitrust oversight that all industries receive). Above all, Fred was a fine human being and scholar, generously taking the time to mentor the next generations, and in the process, not only share his compendium of economic insights, but also listen and learn from others—including those with opposing views on major issues. In a very real sense every modern-day student of regulation and competition policy is a student of Kahn and his teachings. As one of a somewhat later generation of his disciples, I have long viewed my collaboration with him as an experience that was more than equivalent to earning a second advanced degree at mid-career. While his passing is a painful personal loss to many and a passing of an era in economics and regulation, his example as an economist, public servant, communicator, and colleague will continue to provide guidance for years to come. Indeed, Fred’s life and career were astoundingly successful and all of those who encountered him in person or through his work as a scholar, practitioner, and public servant were enormously fortunate and privileged to have been along for part of the ride.

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