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	<title>Comments on: Starbucks Antitrust Update</title>
	<atom:link href="http://truthonthemarket.com/2006/09/29/starbucks-antitrust-update/feed/" rel="self" type="application/rss+xml" />
	<link>http://truthonthemarket.com/2006/09/29/starbucks-antitrust-update/</link>
	<description>Academic commentary on law, business, economics and more</description>
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		<title>By: Montgomery Kosma</title>
		<link>http://truthonthemarket.com/2006/09/29/starbucks-antitrust-update/#comment-6254</link>
		<dc:creator><![CDATA[Montgomery Kosma]]></dc:creator>
		<pubDate>Wed, 04 Oct 2006 12:21:36 +0000</pubDate>
		<guid isPermaLink="false">http://www.truthonthemarket.com/2006/09/29/starbucks-antitrust-update/#comment-6254</guid>
		<description><![CDATA[The principal set of these I&#039;ve seen are the &lt;a HREF=&quot;http://www.biz.uiowa.edu/iem/&quot; rel=&quot;nofollow&quot;&gt;Iowa Electronic Markets&lt;/a&gt; run by the University of Iowa. However, those focus on election results, not court decisions.  I don&#039;t believe that I&#039;ve seen one that tracked the Supreme Court, although I may have missed it.

As for seed money, as an academic you probably have better access to such funds.  I&#039;d think that a partnership between GMU Law and Econ departments could seek a grant from DOE, which funded Iowa.  I&#039;ll keep this in mind, though, as I talk with my thinktank friends.]]></description>
		<content:encoded><![CDATA[<p>The principal set of these I&#8217;ve seen are the <a HREF="http://www.biz.uiowa.edu/iem/" rel="nofollow">Iowa Electronic Markets</a> run by the University of Iowa. However, those focus on election results, not court decisions.  I don&#8217;t believe that I&#8217;ve seen one that tracked the Supreme Court, although I may have missed it.</p>
<p>As for seed money, as an academic you probably have better access to such funds.  I&#8217;d think that a partnership between GMU Law and Econ departments could seek a grant from DOE, which funded Iowa.  I&#8217;ll keep this in mind, though, as I talk with my thinktank friends.</p>
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		<title>By: Josh</title>
		<link>http://truthonthemarket.com/2006/09/29/starbucks-antitrust-update/#comment-6253</link>
		<dc:creator><![CDATA[Josh]]></dc:creator>
		<pubDate>Tue, 03 Oct 2006 20:22:22 +0000</pubDate>
		<guid isPermaLink="false">http://www.truthonthemarket.com/2006/09/29/starbucks-antitrust-update/#comment-6253</guid>
		<description><![CDATA[I like where you are going with this, and agree that it would be more productive (and profitable!  I still haven&#039;t seen a dime from this blogging thing).  If you are willing to find the seed money for the exchange, I&#039;m game.  Don&#039;t current information markets allow you to do this already, though?]]></description>
		<content:encoded><![CDATA[<p>I like where you are going with this, and agree that it would be more productive (and profitable!  I still haven&#8217;t seen a dime from this blogging thing).  If you are willing to find the seed money for the exchange, I&#8217;m game.  Don&#8217;t current information markets allow you to do this already, though?</p>
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		<title>By: Montgomery Kosma</title>
		<link>http://truthonthemarket.com/2006/09/29/starbucks-antitrust-update/#comment-6252</link>
		<dc:creator><![CDATA[Montgomery Kosma]]></dc:creator>
		<pubDate>Tue, 03 Oct 2006 19:43:12 +0000</pubDate>
		<guid isPermaLink="false">http://www.truthonthemarket.com/2006/09/29/starbucks-antitrust-update/#comment-6252</guid>
		<description><![CDATA[Rather than just violating the rule with impunity, you could do something more productive.  How about setting up a futures exchange to trade on the likely outcomes of Supreme Court cases?  Then once you&#039;ve established a track record, that information could form the basis for a series of very interesting (and probably more useful than average) amicus briefs.]]></description>
		<content:encoded><![CDATA[<p>Rather than just violating the rule with impunity, you could do something more productive.  How about setting up a futures exchange to trade on the likely outcomes of Supreme Court cases?  Then once you&#8217;ve established a track record, that information could form the basis for a series of very interesting (and probably more useful than average) amicus briefs.</p>
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		<title>By: Josh</title>
		<link>http://truthonthemarket.com/2006/09/29/starbucks-antitrust-update/#comment-6251</link>
		<dc:creator><![CDATA[Josh]]></dc:creator>
		<pubDate>Tue, 03 Oct 2006 18:02:16 +0000</pubDate>
		<guid isPermaLink="false">http://www.truthonthemarket.com/2006/09/29/starbucks-antitrust-update/#comment-6251</guid>
		<description><![CDATA[LOL.  Fair enough Montgomery.  Such predictions are surely not a positive expected value gamble in the long-run ... especially in light of Twombly (for now) and the opportunity to amend.  But if bloggers are not allowed to violate this rule with impunity, what would be left for us to do?]]></description>
		<content:encoded><![CDATA[<p>LOL.  Fair enough Montgomery.  Such predictions are surely not a positive expected value gamble in the long-run &#8230; especially in light of Twombly (for now) and the opportunity to amend.  But if bloggers are not allowed to violate this rule with impunity, what would be left for us to do?</p>
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		<title>By: Montgomery Kosma</title>
		<link>http://truthonthemarket.com/2006/09/29/starbucks-antitrust-update/#comment-6250</link>
		<dc:creator><![CDATA[Montgomery Kosma]]></dc:creator>
		<pubDate>Tue, 03 Oct 2006 17:53:31 +0000</pubDate>
		<guid isPermaLink="false">http://www.truthonthemarket.com/2006/09/29/starbucks-antitrust-update/#comment-6250</guid>
		<description><![CDATA[Josh, your posts violates a cardinal rule of antitrust litigation: never, EVER, predict a successful motion to dismiss.

See, e.g., the Twombly case in S.D.N.Y. / 2d. Cir. / S.Ct.]]></description>
		<content:encoded><![CDATA[<p>Josh, your posts violates a cardinal rule of antitrust litigation: never, EVER, predict a successful motion to dismiss.</p>
<p>See, e.g., the Twombly case in S.D.N.Y. / 2d. Cir. / S.Ct.</p>
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		<title>By: Keith</title>
		<link>http://truthonthemarket.com/2006/09/29/starbucks-antitrust-update/#comment-6249</link>
		<dc:creator><![CDATA[Keith]]></dc:creator>
		<pubDate>Sun, 01 Oct 2006 15:49:17 +0000</pubDate>
		<guid isPermaLink="false">http://www.truthonthemarket.com/2006/09/29/starbucks-antitrust-update/#comment-6249</guid>
		<description><![CDATA[Thanks for tracking down the complaint, Josh. Seems that Belvi apparently *did find* a so-called Class A building in Bellevue that was willing to rent space to it even though Starbucks already was operating there too. So much for the claim that Starbucks locked up all the real estate!

Belvi&#039;s problem wasn&#039;t getting space, it seems, so much as being able to compete with Starbucks on the merits once it got the space. Belvi is horrified that Starbucks solicited some of Belvi&#039;s customers with free samples of Starbucks coffee. But it&#039;s hard to see how such a standard marketing strategy is &quot;predatory.&quot; Many firms give out free product samples as a way to educate consumers. It&#039;s quite a stretch to call that predatory.

The class action aspect of the complaint is also mysterious. The larger the class of incumbent and potential entrant firms in the Seattle and Bellevue coffee shop markets, the less convincing a Section 2 monopolization allegation becomes. This is, after all, an industry with low barriers to entry. As the complaint itself defines the relevant class, any existing shop can enter the specialty coffee market simply by purchasing an espresso machine!]]></description>
		<content:encoded><![CDATA[<p>Thanks for tracking down the complaint, Josh. Seems that Belvi apparently *did find* a so-called Class A building in Bellevue that was willing to rent space to it even though Starbucks already was operating there too. So much for the claim that Starbucks locked up all the real estate!</p>
<p>Belvi&#8217;s problem wasn&#8217;t getting space, it seems, so much as being able to compete with Starbucks on the merits once it got the space. Belvi is horrified that Starbucks solicited some of Belvi&#8217;s customers with free samples of Starbucks coffee. But it&#8217;s hard to see how such a standard marketing strategy is &#8220;predatory.&#8221; Many firms give out free product samples as a way to educate consumers. It&#8217;s quite a stretch to call that predatory.</p>
<p>The class action aspect of the complaint is also mysterious. The larger the class of incumbent and potential entrant firms in the Seattle and Bellevue coffee shop markets, the less convincing a Section 2 monopolization allegation becomes. This is, after all, an industry with low barriers to entry. As the complaint itself defines the relevant class, any existing shop can enter the specialty coffee market simply by purchasing an espresso machine!</p>
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