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The collection of all scholarly commentary on law, economics, and more

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Crane is not Right: A Response to Dan Crane on Loyalty Discounts

Guest post by Steve Salop responding to Dan’s latest post on the appropriate liability rule for loyalty discounts. Other posts in the series: Steve, Dan, and Thom. (1) Dan says that price-cost test should apply to “customer foreclosure” allegations.   One of my key points was that many loyalty discount claims involve “input foreclosure” or “raising rivals’ costs” effects, not plain-vanilla ... Crane is not Right: A Response to Dan Crane on Loyalty Discounts

Wright is Right, and Wright is Wrong: A Response to Steve Salop on Loyalty Discounts

Guest post by Dan Crane, responding to Steve’s post responding to Dan’s earlier post and Thom’s post on the appropriate liability rule for loyalty discounts. Something that Thom and I both said in our earlier posts needs to be repeated at the outset:  I don’t know of anyone who disagrees with Steve and Josh that raising rivals’ costs (“RRC”) and ... Wright is Right, and Wright is Wrong: A Response to Steve Salop on Loyalty Discounts

Wright is Right and Price-Cost Safe Harbors are Wrong: The Raising Rivals’ Cost Paradigm, Loyalty Discounts and Exclusive Dealing

Guest post by Steve Salop, responding to Dan’s post and Thom’s post on the appropriate liability rule for loyalty discounts. I want to clarify some of the key issues in Commissioner Wright’s analysis of Exclusive Dealing and Loyalty Discounts as part of the raising rivals’ costs (“RRC”) paradigm. I never thought that I would have to defend Wright against ... Wright is Right and Price-Cost Safe Harbors are Wrong: The Raising Rivals’ Cost Paradigm, Loyalty Discounts and Exclusive Dealing

Dan Crane on Commissioner Wright’s Rejection of a Price-Cost Test for Loyalty Discounts

Guest post by Michigan Law’s Dan Crane. (See also Thom’s post taking issue with FTC Commissioner Josh Wright’s recent remarks on the appropriate liability rule for loyalty discounts). A number of people on both sides of the ideological spectrum were surprised by FTC Commissioner Josh Wright’s recent speech advocating that the FTC reject the use of price-cost ... Dan Crane on Commissioner Wright’s Rejection of a Price-Cost Test for Loyalty Discounts

Should There Be a Safe Harbor for Above-Cost Loyalty Discounts? Why I Believe Wright’s Wrong.

It’s not often that I disagree with my friend and co-author, FTC Commissioner Josh Wright, on an antitrust matter.  But when it comes to the proper legal treatment of loyalty discounts, the Commish and I just don’t see eye to eye. In a speech this past Monday evening, Commissioner Wright rejected the view that there should ... Should There Be a Safe Harbor for Above-Cost Loyalty Discounts? Why I Believe Wright’s Wrong.

Agent McConnell and My Generation’s “Greatest Mind on Antitrust Law”

If we’ve learned anything from the pending IRS scandal, it’s that bureaucrats matter.  Senate Minority Leader Mitch McConnell apparently thinks so.  According to a recent National Review article, McConnell, unlike most minority leaders, has put a great deal of effort into recommending highly qualified individuals for spots on the more than 100 bipartisan agencies and commissions in the federal bureaucracy.  He views ... Agent McConnell and My Generation’s “Greatest Mind on Antitrust Law”

Why I think the government will have a tough time winning the Apple e-books antitrust case

Trial begins today in the Southern District of New York in United States v. Apple (the Apple e-books case), which I discussed previously here. Along with co-author Will Rinehart, I also contributed an  essay to a discussion of the case in Concurrences (alongside contributions from Jon Jacobson and Mark Powell, among others). Much of my ... Why I think the government will have a tough time winning the Apple e-books antitrust case

My Hip Saga and How the Affordable Care Act Squandered Our Best Opportunity to Lower Health Care Costs

After two years of nagging and increasingly worse hip and leg pain, I learned last August (at age forty) that I have a congenital hip deformity and need to have both hips replaced.  In planning for this surgery, I’ve witnessed first-hand a problem that is driving American health care costs through the roof and is exacerbated by ... My Hip Saga and How the Affordable Care Act Squandered Our Best Opportunity to Lower Health Care Costs

Zeke Emanuel on the ACA’s Adverse Selection Problem and Solutions to It

Ezekiel Emanuel, Rahm’s brother and former health care adviser to President Obama, acknowledges in today’s Wall Street Journal that adverse selection may prove to be a “bump in the road” in the implementation of the Affordable Care Act (ACA).  But never you mind.  He’s got solutions.  And, as usual, they all come down to messaging. Emanuel describes ... Zeke Emanuel on the ACA’s Adverse Selection Problem and Solutions to It

Behavioral Merger Remedies and the Hippocratic Principle

Last Thursday, the FTC settled a challenge to a company’s acquisitions of two key rivals. The two acquisitions, each of which failed to meet the threshold for required reporting under Hart Scott Rodino, occurred in 2005 and 2008. Because the acquired companies have been fully integrated into the acquirer and all distinct operations have been ... Behavioral Merger Remedies and the Hippocratic Principle

Commissioner Wright lays down the gauntlet on Section 5

As Thom noted (here and here), Josh’s speech at the ABA Spring Meeting was fantastic.  In laying out his agenda at the FTC, Josh highlighted two areas on which he intends to focus: Section 5 and public restraints on trade.  These are important, even essential, areas, and Josh’s leadership here will be most welcome. I’m ... Commissioner Wright lays down the gauntlet on Section 5

Commissioner Wright’s Speech at the ABA Antitrust Section’s Spring Meeting

Friday I discussed FTC Commissioner (and TOTM alumnus) Josh Wright’s speech at the Spring Meeting of the ABA’s Antitrust Section.  Wright’s speech, What’s Your Agenda?, is now available online. As I mentioned, Commissioner Wright emphasized two matters on which he’d like to see FTC action.  First, he hopes the Commission will help fulfill the promise of Section 5 of the FTC Act by ... Commissioner Wright’s Speech at the ABA Antitrust Section’s Spring Meeting