The Archives

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

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The Economics of Gang Colors

Here.  The article highlights an a paper stressing the role of gang colors as a commitment device to ensure higher quality criminals.  The mechanism works, the authors contend, because gang colors are a handicap that increases the probability of detection and thus, low quality criminals are less likely to be able to “afford” wearing them.  ... The Economics of Gang Colors

Review of Industrial Organization Special Merger Guidelines Issue

The August 2011 issue of Review of Industrial Organization is a special issue on the 2010 Horizontal Merger Guidelines edited by Roger Blair. The issue is available here, and includes articles from: Herbert Hovenkamp Robert Willig Wayne-Roy Gale, Robert C. Marshall, Leslie M. Marx and Jean-Francois Richard Roger D. Blair and Jessica S. Haynes John ... Review of Industrial Organization Special Merger Guidelines Issue

The SEC’s revolving door

I discussed last year the peculiarities of the SEC’s complaint against Goldman arising out of the infamous Abacus transaction. One peculiarity is how John Paulson, whose undisclosed role in structuring the transaction led to the charges against Goldman, has escaped blame. Today Andrew Ross Sorkin sheds some light on why that might be:  a senior ... The SEC’s revolving door

The AIG-General Re reversals

A Second Circuit panel knocked over yet another federal prosecution, this one of General Re and AIG executives who were convicted of propping up AIG with an allegedly sham reinsurance transaction. As summarized by a WSJ editorial, the abuses that sent this prosecution down the tubes “include prejudicial evidence, botched jury instructions and “compelling inconsistencies” ... The AIG-General Re reversals

The remains of Howrey

I have previously covered the death of Howrey. I noted here the question of the extent to which Howrey’s LLP shield will protect its former partners from liability for the firm’s debts, and more generally what can happen following “the swift collapse of big law firms that have no real assets except the lawyers who, ... The remains of Howrey

Overcriminalization in action: the FCPA

I have written about the problems of criminalizing corporate agency costs and the intersection between these agency costs and the agency costs of the government agents who prosecute the crimes. Joe Yockey, in his recent paper Solicitation, Extortion, and the FCPA, shows that Foreign Corrupt Practices Act prosecutions provide a particularly acute illustration of these ... Overcriminalization in action: the FCPA

Groupon’s tmi

The WSJ reports that the SEC is on Groupon’s case for reporting “adjusted consolidated segment operating income” of $81.6 million while noting that subtracting marketing costs would produce a loss of $98 million.  Groupon recently added that adjusted CSOI “should not be considered as a measure of discretionary cash available to us to invest in ... Groupon’s tmi

Cost-Benefit Analysis at the SEC

Despite the SEC’s groundbreaking defeat at the DC Circuit over the proxy access rules, on the grounds that it failed to adequately weigh the costs and benefits of the rule proposal, the SEC Chairman has decided that the Commission will not conduct a full cost-benefit analysis of rules mandated by the Dodd-Frank Act.  In a ... Cost-Benefit Analysis at the SEC

The Missouri suit against LegalZoom

Apropos of my recent discussions (e.g. here) of litigation against LegalZoom (and note my potential interest in this subject), the Law Blog reports on the Missouri class against LegalZoom alleging that LegalZoom is illegally practicing law in Missouri.  The judge denied a motion for summary judgment and the case is going to trial August 22. The ... The Missouri suit against LegalZoom

Hot off the press: the future of legal education

My oft-blogged paper on the future of legal education, Practicing Theory: Legal Education for the Twenty-First Century, has now been published in the Iowa Law Review (the link takes you to the published version).  Here’s the abstract: Law practice and legal education are facing fundamental changes. Many assume that these changes will force law schools ... Hot off the press: the future of legal education

Cooper and Kovacic on Behavioral Economics and Regulatory Agencies

There is an embarrassing blind spot in the behavioral law and economics literature with respect to implementation of policy whether via legislation or administrative agency.  James Cooper and William Kovacic — both currently at the Federal Trade Commission as Attorney Advisor Commissioner, respectively — aim to fill this gap with a recent working paper entitled ... Cooper and Kovacic on Behavioral Economics and Regulatory Agencies

The mirage of lawyer discipline

The Des Moines Register (HT Law Blog) reports that the Iowa Supreme Court is considering offering lawyers the option of agreeing to expedited law license suspension in exchange for confidentiality: Under the proposed rule change, lawyers suspended for stealing from clients, drug and alcohol problems, and neglecting important cases could hide what they did and ... The mirage of lawyer discipline