Showing results for: “loyalty discounts”
Intel Settlement Watch Part II
While Intel Corporation nears its settlement deadline with the Federal Trade Commission, it received good news from a federal district court in Delaware evaluating the evidence of alleged consumer harm from the discounts Intel offers to buyers. It is also very important to note that this pass from a US court applying standards of consumer ... Intel Settlement Watch Part II
The shareholder wealth maximization myth
In a recent speech at the Netroots Nation, Senator Al Franken tried to frighten the crowd by trotting out the corporate bogeyman that greedily makes decisions without regard to anything other than profit. Franken told them: “it is literally malfeasance for a corporation not to do everything it legally can to maximize its profits.” Individuals ... The shareholder wealth maximization myth
TOTM Welcomes Dan Crane
TOTM is pleased to announce Professor Daniel Crane (Michigan Law) as — for now we hope — a guest blogger. Dan is a prolific scholar in antitrust and intellectual property. Dan’s recent work has focused on antitrust and economic regulation, particularly the institutional structure of antitrust enforcement, predatory pricing, bundling, and the antitrust implications of ... TOTM Welcomes Dan Crane
What’s the Optimal Level of Sports Rivalry?
Michael Jordan says he would have never called Larry Bird or Magic Johnson to join forces because “honestly, I was trying to beat those guys.” Jordan catches himself, notes its a different era now, and concludes about the LeBron-Wade-Bosh cooperation that he “can’t say that’s a bad thing.” Dan Shaugnessy (ESPN) recounts how Cardinals pitcher ... What’s the Optimal Level of Sports Rivalry?
Solving Shelf Space Incentive Conflicts With Vertical Integration and By Contract in the Soda Market
There is a nice example in the WSJ concerning the economics of vertical contractual arrangements. I’ve noted previously the apparent trend in the soda industry toward vertical integration and the link to the economics of promotional shelf space. In particular, incentive conflicts between manufacturers and retailers of differentiated products over the use of promotional shelf ... Solving Shelf Space Incentive Conflicts With Vertical Integration and By Contract in the Soda Market
Does the Supreme Court Deem Price Discrimination to be an “Anticompetitive” Effect of Tying?
One of my summer writing projects is a response to Einer Elhauge’s recent, highly acclaimed article, Tying, Bundled Discounts, and the Death of the Single Monopoly Profit Theory. In the article, which appeared in the December 2009 Harvard Law Review, Elhauge defends current tying doctrine, which declares tie-ins to be per se illegal when the ... Does the Supreme Court Deem Price Discrimination to be an “Anticompetitive” Effect of Tying?
Pre-formation fiduciary duties in LLCs: another NY problem
I have often complained (e.g., here) of the troubling lawlessness of NY LLC law, a problem that may be affecting the use of LLCs in that state and thereby NY’s business environment. A recent example is Roni LLC v Arfa. Investors in a real estate deal sued the promoters for breach of fiduciary duty by ... Pre-formation fiduciary duties in LLCs: another NY problem
Will the FTC Sue Apple?
I don’t know. But apparently, industry analysts preliminarily think not. I tend to disagree. At least, I think its far too early to be confident in either direction. Press reports, such as this one, are primarily relying on the report of an analyst who correctly points out that Apple’s market share would be an ... Will the FTC Sue Apple?
An Antitrust Analysis of the Federal Trade Commission’s Complaint Against Intel
As readers of TOTM know, I’ve been critical of both the Federal Trade Commission’s Complaint against Intel from a consumer welfare perspective as well as the wobbly intellectual underpinnings of the Commission’s attempt to expand its FTC Act Section 5 authority to evade (see also here) the more stringent monopolization standards under Section 2 of ... An Antitrust Analysis of the Federal Trade Commission’s Complaint Against Intel
"Prosocial," Output-Reducing Collusion
One of my antitrust students recently pointed me to a television commercial that could inspire a great exam question. Unfortunately, I didn’t see the ad until I’d finished drafting this semester’s antitrust exam (which I’ve been grading…hence the absence from TOTM). The T.V. commercial trumpets an agreement among the members of the American Beverage Association ... "Prosocial," Output-Reducing Collusion
Investor's Bill of Rights
This week the Senate is scheduled to hear debate over the latest financial regulation reform bill (also known as the Dodd Bill). Part of the Dodd Bill incorporated aspects from a bill from Senator Schumer introduced last summer, against which I testified, called the “Shareholder’s Bill of Rights.” In light of this week’s momentous events, ... Investor's Bill of Rights
David Balto (and the FTC) gets it woefully wrong on Intel
David Balto has penned a short apologia of the FTC’s Intel case (HT: Danny Sokol). Unfortunately his defense (and, unfortunately, the FTC’s case) is woefully misguided. Balto writes: Intel has been clearly dominant in the market for central processing units (CPUs) with between 80 percent and 98 percent of the market. The practices at issue ... David Balto (and the FTC) gets it woefully wrong on Intel
