The Archives

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

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Why not more securities disclosure?

Steve Davidoff discusses materiality issues in the GS Abacus transaction, Gupta/Galleon, Apple and Jobs’ health and Sokol. He questions “quirky” American securities laws that don’t require continuous disclosure of material information, and a materiality standard which “allows lawyers and others to argue that something is not material because they didn’t think it was certain or ... Why not more securities disclosure?

Penn Law’s Wolff on Labor Issues and the Gay Community

University of Pennsylvania law professor Tobias Wolff says that if you’re gay, you should support expansive collective bargaining rights for labor unions. Writing at the Huffington Post, he recently identified the promotion of labor unions as “one of the most important priorities for our community at this moment,” and he urged gay people “to contribute ... Penn Law’s Wolff on Labor Issues and the Gay Community

Greenberg, Spitzer and AIG

James Freeman, reviewing Roddy Boyd’s new book about AIG in the WSJ, discusses how Eliot Spitzer forced Hank Greenberg out of AIG in March 2005, and the consequences of that move:  What is certain is that the world’s largest insurer was abruptly separated from the world’s most experienced risk manager at the worst possible moment. ... Greenberg, Spitzer and AIG

Fred McChesney from Northwestern to Miami

Fred McChesney is leaving Northwestern (where he is Haddad Professor of Law) for a chair at the University of Miami (HT: Leiter).   As Leiter notes, this is a major pickup for Miami.  McChesney is a first-rate scholar and has done pioneering work in law and economics, public choice, corporate law, and antitrust.   With more and ... Fred McChesney from Northwestern to Miami

What search bias would really look like

A friend sent me a link to this Simon Rich “Shouts and Murmurs” from the New Yorker last year.  Somehow I missed it at the time.  It’s pretty funny.  A taste: My favorite Google feature is Google Dictionary. Whenever I need a word defined, I just type it into the search box and the meaning ... What search bias would really look like

Net neutrality and Trinko

Commentators who see Trinko as an impediment to the claim that antitrust law can take care of harmful platform access problems (and thus that prospective rate regulation (i.e., net neutrality) is not necessary), commit an important error in making their claim–and it is a similar error committed by those who advocate for search neutrality regulation, as ... Net neutrality and Trinko

Market Definition and the Merger Guidelines, Again

Do the 2010 Horizontal Merger Guidelines require market definition?  Will the agencies define markets in cases they bring?  Are they required to do so by the Guidelines?  By the Clayton Act? Here is Commissioner Rosch in the FTC Annual Report (p.18): “A significant development in 2010 was the issuance of updated Horizontal Merger Guidelines by ... Market Definition and the Merger Guidelines, Again

Merger Retrospective

Several years ago, the DOJ cleared a merger between Whirlpool and Maytag.   The primary defense was that post-merger prices could not rise because of intense competition from foreign competitors like LG and Samsung. Apparently the actual competition was more than Whirlpool wanted to bear.  Guess What?  Mr. Laissez-Faire Antitrust, meet Dr. Public Choice.  The Wall ... Merger Retrospective

Smoothing Demand Kinks

One criticism of the unilateral effects analysis in the 2010 Merger Guidelines is that demand curves are kinked at the current price.  A small increase in price will dramatically reduce the quantity demanded.  One rationale for the kink is that people over-react to small price changes and dramatically reduce demand.  As a result of this ... Smoothing Demand Kinks

Learning Groupon in law school

The March-April University of Chicago magazine discusses a class at Booth on online entrepreneurship co-taught by Groupon cofounders Eric Lefkofsky and Brad Keywell. The article says each received law degrees [from Michigan] in 1993.  Law school, Keywell says, “is one of the great mechanisms for understanding how to think critically about the world,” and essential ... Learning Groupon in law school

Is the FTC Moving to the National Gallery of Art, Part II

Congressman Mica’s mission to oust the Federal Trade Commission from its current digs continues.  Mica is the chairman of the House Transportation and Infrastructure Committee, and has made the move top priority (Washington Post): “You won’t believe me, but this is my only priority as chairman,” he says — a fact that has the commissioners ... Is the FTC Moving to the National Gallery of Art, Part II

Medical Billing: A warning

Recently the Wall Street Journal had an article about medical billing errors.  These can be very costly because they can impact your credit rating.  But there is one billing practice they missed.  Some health care providers (we have found this with two and it is probably more common) begin the billing date as of the ... Medical Billing: A warning