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The Apple E-Book Kerfuffle Meets Alfred Marshall’s Principles of Economics
From a pure antitrust perspective, the real story behind the DOJ’s Apple e-book investigation is the Division’s deep commitment to the view that Most-Favored-Nation (MFN) clauses are anticompetitive (see also here), no doubt spurred on at least in part by Chief Economist Fiona Scott-Morton’s interesting work on the topic. Of course, there are other important ... The Apple E-Book Kerfuffle Meets Alfred Marshall’s Principles of Economics
The DOJ’s Problematic Attack on Property Rights Through Merger Review
The DOJ’s recent press release on the Google/Motorola, Rockstar Bidco, and Apple/ Novell transactions struck me as a bit odd when I read it. As I’ve now had a bit of time to digest it, I’ve grown to really dislike it. For those who have not followed Jorge Contreras had an excellent summary of events ... The DOJ’s Problematic Attack on Property Rights Through Merger Review
More Bailout Fallout: Non-buyer’s Remorse
An interesting story in the WSJ Online today about American International Group (AIG)’s use of a standard tax write-off and the political firestorm it is creating…all because the Washington establishment thought it could hide behind semantics during the bailout era. The benefits at issue were accrued by AIG as it amassed record losses amid the ... More Bailout Fallout: Non-buyer’s Remorse
Competition for Distribution, Search Engine Edition
A recent report notes that while Apple may be shifting away from Google Maps, Google remains the default search engine in Safari, and thus, remains the default search on a variety of Apple devices. Google competes vigorously for this right; indeed, competition among search engines drives the price paid to Apple for its ability to ... Competition for Distribution, Search Engine Edition
Google Isn’t ‘Leveraging Its Dominance,’ It’s Fighting To Avoid Obsolescence
Six months may not seem a great deal of time in the general business world, but in the Internet space it’s a lifetime as new websites, tools and features are introduced every day that change where and how users get and share information. The rise of Facebook is a great example: the social networking platform ... Google Isn’t ‘Leveraging Its Dominance,’ It’s Fighting To Avoid Obsolescence
David Schleicher on City Unplanning
Forbes interviews my colleague and office neighbor David Schleicher on his new and very interesting paper, City Unplanning. This paper continues Schleicher’s interesting line of research on the law and economics of cities with a creative and powerful analysis of the political economy of zoning in big cites. Here’s a brief snippet from the start ... David Schleicher on City Unplanning
Greg Werden in Defense of Defining Markets
One of the more significant papers in antitrust of late has been Professor Kaplow’s Why (Ever) Define Markets? Kaplow provocatively argues that the entire “market definition/ market share” paradigm of antitrust is misguided and beyond repair. Kaplow describes the exclusive role of market definition in that paradigm as generating inferences about market power, argues that ... Greg Werden in Defense of Defining Markets
Federalist Society Event (March 14): Antitrust as Regulation?
You can register here. From the website description: The popular press is full of reports of a renewed vigor in parts of our antitrust enforcement regime that address the conduct of leading firms. Investigations have been started or rumored against any number of firms near or at the top of various parts of the technology ... Federalist Society Event (March 14): Antitrust as Regulation?
A Tale of Two Subsidies
Last week’s business news highlighted two tremendous subsidy programs. In one case, the company received no direct payment for product development. None of its suppliers received targeted subsidies to produce parts. But consumers were subsidized to encourage them to buy the product. In the other case, the company received direct payments to underwrite the cost ... A Tale of Two Subsidies
Is Dental Care a Preventive Measure Health Insurers Must Cover? Let’s Hope Not.
I recently heard an ominous NPR story on the rise in trips to the emergency room by people seeking dental treatment. In 2009 alone, Tennessee’s emergency rooms had more than 55,000 dental-related visits — five times as many as for burns. Florida’s emergency rooms experienced over 115,000 ER visits for dental matters in 2010. Charges for those visits totaled $88 million. This ... Is Dental Care a Preventive Measure Health Insurers Must Cover? Let’s Hope Not.
Local Barriers to Entry: Arlington Beer Garden Edition
Last week I posted about the regulatory barriers facing an ice cream shop in San Francisco. A student passes along a story that hits a bit closer to home: the sale of beer right here in Arlington County. Apparently, the owner of the Westover Beer Garden has had enough: It’s been a contentious couple of ... Local Barriers to Entry: Arlington Beer Garden Edition
What Economists Do
Courtesy of Greg Mankiw.
