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

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Opening the US securities markets

Larry makes a strong argument below for why the proposed SEC rules changes reported today in the WSJ should not be heralded as some great opening up of US securities markets, but that the changes are little more than political posturing to prevent addressing the real problem of the costs imposed by securities regulation more ... Opening the US securities markets

Closing the US securities markets

The WSJ reports that the SEC is considering raising the 500-shareholder limit on the number of holders of a class of securities a company can have before having to register that security with the Commission under Section 12(g) of the 1934 Act. The SEC reportedly is also considering relaxing the “general solicitation” restriction on private ... Closing the US securities markets

Corporate governance, incentive compensation and the uncorporation

Acharya, Gabarro and Volpin’s Competition for Managers, Corporate Governance and Incentive Compensation has interesting insights and data on both corporate governance and executive compensation debates.  In the final analysis, I think it’s most interesting for what it says about the uncorporation.  Here’s the abstract:  We propose a model in which firms use corporate governance as ... Corporate governance, incentive compensation and the uncorporation

Pioneers of Law and Economics Available in Paperback

Pioneers of Law and Economics (with Lloyd Cohen) is now available in paperback.  You can get it for 20% off the cover price at the link above (discounted price = $36). There are essays focusing on: Ronald Coase, Aaron Director, George Stigler, Armen Alchian, Harold Demsetz, Benjamin Klein, James Buchanan, Gordon Tullock, Henry Manne, Richard ... Pioneers of Law and Economics Available in Paperback

Type I errors in action, Google edition

Does anyone really still believe that the threat of antitrust enforcement doesn’t lead to undesirable caution on the part of potential defendants? Whatever you may think of the merits of the Google/ITA merger (and obviously I suspect the merits cut in favor of the merger), there can be no doubt that restraining Google’s (and other ... Type I errors in action, Google edition

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

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