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

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Ninth Circuit Moves Tying Doctrine in the Right Direction. Will SCOTUS Follow?

The Ninth Circuit recently issued a decision that pushes the doctrine governing tying in the right direction.  If appealed, the decision could provide the Roberts Court with an opportunity to do for tying what its Leegin decision did for resale price maintenance:  reduce error costs by bringing an overly prohibitory liability rule in line with economic learning.  First, some ... Ninth Circuit Moves Tying Doctrine in the Right Direction. Will SCOTUS Follow?

Securities class actions in state court

I’ve previously written about the increasingly unruly market for corporate law, in which many cases involving the governance Delaware corporations are being brought outside of Delaware.  Now Jennifer Johnson writes about Securities Class Actions in State Court.  Here’s the abstract: Over the past two decades, Congress has gradually usurped the power of state regulators to ... Securities class actions in state court

The Supreme Court teaches a securities lesson

In Erica P. John Fund vs. Halliburton the Court held that the Fifth Circuit erred when it required loss causation for class certification.  The Court taught the lower courts the distinction among various elements of securities cases.  In order to get Basic’s presumption of reliance you have to prove, e.g., that the alleged misrepresentations were ... The Supreme Court teaches a securities lesson

Dodd-Frank’s regulatory vacuum

There’s been a lot of talk about the regulatory impact on job-creation.  Add this: the regulatory vacuum resulting from an absence of rules under Dodd-Frank. A WSJ article notes that More than 100 new derivatives requirements in the law take effect on July 16, even though regulators have yet to issue final rules in the ... Dodd-Frank’s regulatory vacuum

Say on pay as Arab Spring

Did you know that shareholders in US corporations are like oppressed citizens of corrupt governments?  Or that “say on pay” is their Arab Spring? If not, you haven’t been reading Gretchen Morgenson.  Better that you read Christine Hurt’s excellent critique of Morgenson’s latest screed.

California regulation

PoL tips a Mercury News story about California regulation: Carl’s Jr. is halting expansion in California and moving its headquarters to Texas. The California permitting process can take up to two years; combined with other regulations, it costs an extra $250,000 more to open a restaurant in California than in Texas. Some details from the ... California regulation

Gretchen Morgenson’s latest scandal

Gretchen Morgenson (with Louise Story), in today’s front-page NYT “newsatorial” reports on and complains about the fact that the SEC’s civil case against Goldman’s Fabrice Tourre (“Fabulous Fab”) in connection with the Abacus deal has not been accompanied by other civil and criminal prosecutions.  The story notes that Tourre worked closely with others at Goldman ... Gretchen Morgenson’s latest scandal

Sprint’s (Ironic?) Campaign for Competition

Sprint, perhaps the most vigorous opponent of the proposed AT&T/T-Mobile merger, has been extolling the values of competition lately.  Last Thursday and again today, the company ran full-page ads in the Wall Street Journal featuring the following text (which was apparently penned by Helen Steiner Rice): Competition is everything. Competition is the steady hand at our back, pushing ... Sprint’s (Ironic?) Campaign for Competition

WAPO Concludes that Vertical Efficiencies Trump Horizontal Market Power

A Washington Post editorial last week reached the surprising conclusion that a series of vertical and horizontal acquisitions that led to a firm owning about 40% of the gas stations in the District of Columbia was procompetitive.  The editorial apparently concluded that the vertical integration efficiencies were more important than the adverse horizontal effects.  The ... WAPO Concludes that Vertical Efficiencies Trump Horizontal Market Power

House Hearing on the AT&T / T-Mobile Merger

As I mentioned previously, I testified at Thursday’s hearing on the AT&T / T-Mobile merger.  My written testimony is available here.  Links to the testimony from other witnesses are available at the link above.  I’ll post transcripts when they become available; same with the video link should one become available (I’m not aware of one ... House Hearing on the AT&T / T-Mobile Merger

More on federalism and immigration

I recently discussed the Supreme Court’s latest decision not to preempt an Arizona law imposing tough sanctions on firms that employ illegal aliens. I concluded it was a close case but that there was a policy argument for the Court’s result based on Erin O’Connor and my theory of regulatory coordination.  Employment laws like Arizona’s ... More on federalism and immigration

Licensing witches

From the NYT, via MR, comes the latest licensing news:  Salem witches are complaining that relaxing the limit on witches’ licenses has led to an oversupply of this ancient profession. One witch, a former accountant, says “It’s like little ants running all over the place, trying to get a buck. Many of them are not ... Licensing witches