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Debiasing: Firms Versus Administrative Agencies

Daniel Kahnemann and co-authors discuss, in the most recent issue of the Harvard Business Review (HT: Brian McCann), various strategies for debiasing individual decisions that impact firm performance.  Much of the advice boils down to more conscious deliberation about decisions, incorporating awareness that individuals can be biased into firm-level decisions, and subjecting decisions to more ... Debiasing: Firms Versus Administrative Agencies

Predatory Output Reduction?

The conventional predation claim involves a monopolist reducing price and increasing output.  Here’s a creative theory involving a claim that a decision to close down factories injures competition: A federal judge in Texas is hearing testimony from farmers who contend that poultry producer Pilgrim’s Pride closed plants and ran them out of business to manipulate ... Predatory Output Reduction?

Cheap Donuts, Expensive Broccoli and Soda Taxes

David Leonhardt’s NY Times column laments the fact that the price of healthful foods has increased relative to unhealthful foods.   He presents this useful chart: The fact that relative prices have changed is often invoked in support of various “fat taxes,” e.g. consider the recent salvo of proposed soda taxes (For example, here and here).   ... Cheap Donuts, Expensive Broccoli and Soda Taxes

Brantley and its Implications for the Proposed Consumer Choice Antitrust Standard

Thom‘s excellent post highlights the Ninth Circuit’s recent decision in Brantley and describes its implications both in terms of rejecting Professor Elhauge’s claim that metering ties and mere surplus extraction amount to competitive harm for the purposes of antitrust and also for the future of the quasi-per se rule of tying.   Thom, in my view ... Brantley and its Implications for the Proposed Consumer Choice Antitrust Standard

Corporate jets: the new backdating?

Looks like a new scandal is brewing.  A WSJ article co-written by one of the backdating reporters (Mark Maremont) looks through FAA flight records to find that dozens of jets operated by publicly traded corporations made 30% or more of their trips to or from resort destinations, sometimes more than 50%. Often, these were places ... Corporate jets: the new backdating?

LLCs are not corporations

Nor are they the redundant fictional entity, “limited liability corporations.” This is a lesson that courts and commentators are finally, slowly, learning.  I highlighted this point last fall in discussing CML V, LLC v. Bax, 6 A.3d 238 (Del. Ch. Nov. 3, 2010), where VC Laster denied a creditor standing to sue derivatively for an LLC, ... LLCs are not corporations

The new associates

The WSJ reports on contract lawyering: When he decided to become a lawyer, Jose Aponte followed a familiar path: He took the LSAT, spent more than $100,000 on law school, took a grueling bar exam and paid for continuing education. * * * For 10 to 12 hours a day—and sometimes during graveyard shifts—contract attorneys ... The new associates

Moving the Merc?

I’ve been writing (here and here) about Illinois’s troubles, in a mobile, multi-jurisdictional world, raising taxes on corporations to pay for its past profligacy.  And now a symbol of Chicago might be in play: The line of businesses looking for tax relief in Illinois keeps growing, with the latest plea coming from the owner of ... Moving the Merc?

Tax

Bootleggers and Baptists, 2011 version

Back in college, I didn’t think it would happen this way: Scotts Miracle-Gro Co. has long sold weed killer. Now, it’s hoping to help people grow killer weed. In an unlikely move for the head of a major company, Scotts Chief Executive Jim Hagedorn said he is exploring targeting medical marijuana as well as other ... Bootleggers and Baptists, 2011 version

What’s really motivating the pursuit of Google?

I have an op-ed up at Main Justice on FTC Chairman Leibowitz’ recent comment in response the a question about the FTC’s investigation of Google that the FTC is looking for a “pure Section Five case.”  With Main Justice’s permission, the op-ed is re-printed here:   There’s been a lot of chatter around Washington about ... What’s really motivating the pursuit of Google?

TechFreedom Search Engine Regulation Event today

Today at 12:30 at the Capitol Visitor Center, TechFreedom is hosting a discussion on the regulation of search engines:  “Search Engine Regulation: A Solution in Search of a Problem?” The basics: Allegations of “search bias” have led to increased scrutiny of Google, including active investigations in the European Union and Texas, a possible FTC investigation, ... TechFreedom Search Engine Regulation Event today

Making a statement under 10b-5

Janus Investment Fund’s (JIF) prospectus included a misstatement about market timing.  Its investment adviser and administrator is Janus Capital Management (JCM).  Plaintiff shareholders in the parent company, Janus Capital Group (JCG) argue in the Supreme Court that JCM should be liable as JIF’s manager for “mak[ing] an[] untrue statement of a material fact” in violation ... Making a statement under 10b-5