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Randomizing Regulation

An interesting post on the University of Pennsylvania Reg Blog from Michael Abramowicz, Ian Ayres, and Yair Listokin (AAY) on “Randomizing Regulation,” based upon their piece in the U Penn L. Rev. If legislators disagree about the efficacy of a proposed policy, why not resolve the disagreement with a bet?  One approach would be to impose ... Randomizing Regulation

Religious Liberty for Dummies

According to Senators Barbara Boxer, Jeanne Shaheen, and Patty Murray, the Catholic Church is the real bully in the fight over whether religious employers must include coverage for contraception in the insurance policies they offer their employees.  In yesterday’s Wall Street Journal, the three responded to, in their words, the “aggressive and misleading campaign” against this ... Religious Liberty for Dummies

Collective Moral Hazard, Maturity Mismatch, and Systemic Bailouts

That’s the title of an interesting article by Emmanuel Farhi and Jean Tirole in the current issue of the  American Economic Review. Here’s the abstract (emphasis added): The article shows that time-consistent, imperfectly targeted support to distressed institutions makes private leverage choices strategic complements. When everyone engages in maturity mismatch, authorities have little choice but ... Collective Moral Hazard, Maturity Mismatch, and Systemic Bailouts

Reference Bloat in Management Journals Meets its Match

Peter Klein offers up some thoughts on “reference bloat” in academic journals: Nature News (via Bronwyn Hall): One in five academics in a variety of social science and business fields say they have been asked to pad their papers with superfluous references in order to get published. The figures, from a survey published today in ... Reference Bloat in Management Journals Meets its Match

Do Expert Agencies Outperform Generalist Judges? Some Preliminary Evidence from the Federal Trade Commission

I’ve posted a new project in progress (co-authored with Angela Diveley) to SSRN.  In “Do Expert Agencies Outperform Generalist Judges?”, we attempt to examine the relative performance FTC Commissioners and generalist Article III federal court judges in antitrust cases and find some evidence undermining the oft-invoked assumption that Commission expertise leads to superior performance in ... Do Expert Agencies Outperform Generalist Judges? Some Preliminary Evidence from the Federal Trade Commission

Further Empirical Evidence on Forum Shopping in Philadelphia Civil Courts

Late last year, with support from the International Center for Law and Economics, I published a paper that empirically analyzed the Philadelphia civil court system. That study focused upon the Philadelphia Complex Litigation Center (PCLC) which handles large mass tort programs including asbestos cases, hormone therapy replacement cases, various prescription drug-related injuries, and other mass ... Further Empirical Evidence on Forum Shopping in Philadelphia Civil Courts

Congratulations to Bill Baer

President Obama has, as rumored, appointed Bill Baer (Arnold & Porter) to head the Antitrust Division.  Reuters reports: Baer, who is the chair of Arnold and Porter’s Antitrust Practice Group, also previously headed the Federal Trade Commission’s competition division when it stopped a merger between Staples and Office Depot in 1997. He will replace Sharis ... Congratulations to Bill Baer

The Federal Reserve Weighs in on Housing Policy

Last month, the Federal Reserve released a study, titled “The U.S. Housing Market: Current Conditions and Policy Considerations,” which offers prescriptions on how to cure the housing mess. Given the importance of this issue to the nation’s economic wellbeing—a large portion of our assets are tied up in real estate, and the associated housing-wealth effects ... The Federal Reserve Weighs in on Housing Policy

Options Have Value, Even If DOT Doesn’t Get It

Last week Thom posted about the government’s attempt to hide the cost of taxes and regulatory fees in commercial airfares. Apparently Spirit Airlines is highlighting another government-imposed cost of doing business by advertising a new $2/ticket fee that the airline has imposed. According a CNN report yesterday: Spirit Airlines says a new federal regulation aimed ... Options Have Value, Even If DOT Doesn’t Get It

Wright v. Rule at Columbia Law on Google and Antitrust

Charles (“Rick”) Rule, who represents Microsoft and is the head of the antitrust practice at Cadwalader, Wickersham & Taft LLP, and I had an opportunity to debate the various antitrust issues involving Google and its search engine on last week.  I didn’t have much of a chance to report here on the blog over the ... Wright v. Rule at Columbia Law on Google and Antitrust

Competition for the Field on the Internet

Keith Woolcock (Time Business) offers an interesting perspective on what economists would describe as “competition for the field” between Apple, Facebook, Google, and Facebook.  It gives a good sense of the many dimensions of competition upon which these firms compete. The upcoming IPO of Facebook, the flak surrounding Twitter’s decision to censor some tweets, and Google’s weaker-than-expected 4th-quarter ... Competition for the Field on the Internet

FTC Closes UFC Investigation

Sports Illustrated: The Federal Trade Commission has concluded and closed a six-month, nonpublic investigation of Zuffa LLC., the owners of the Ultimate Fighting Championship, and will not take further action at this time, an FTC spokesperson confirmed to SI.com on Tuesday. According to closing letters to parties involved that were made public Tuesday, the FTC ... FTC Closes UFC Investigation