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Lawyers and the invention of the barometer

Stephen Baker, writing in yesterday’s WSJ: Watson doesn’t “know” anything, experts say. * * * This is all enough to make you feel reinvigorated to be human. But focusing on Watson’s shortcomings misses the point. It risks distracting people from the transformation that Watson all but announced on its “Jeopardy!” debut: These question-answering machines will ... Lawyers and the invention of the barometer

The continuing mystery of the Gupta case

Friday I wondered whether the SEC’s hurried decision to administratively charge former Goldman director Gupta with insider trading suggested it was “in league with Justice to patch a gaping hole in its case against R by tainting a key witness.”  Then I updated with John Carney’s story that Justice actually opposed the SEC over these ... The continuing mystery of the Gupta case

Privacy Cost-Benefit Analysis

As I mentioned in my previous post, there is a strong effort to regulate the use of information on the web in the name of “privacy.” The basic tradeoff that drives the web is that firms use information for advertising and other purposes,and in return consumers get lots of things free.  Google alone offers about 40 free services, including the original ... Privacy Cost-Benefit Analysis

Dilbert on Opportunity Cost

From today’s Washington Post:

Congressmen as securities traders

With all of the attention being given to insider trading by hedge funds and malfeasance by corporate executives, it’s worth reminding ourselves that the politicians who seek to impose discipline are themselves no angels. An important study published seven years ago revealed that U.S. senators were reaping returns from stock trading that strongly suggested they ... Congressmen as securities traders

Privacy and Tracking

First I would like to thank Geoff Manne for inviting me to join this blog.  I know most of my fellow bloggers and it is a group I am proud to be associated with. For my first few posts I am going to write about privacy.  This is a hot topic.  Senators McCain and Kerry ... Privacy and Tracking

Fuld, Mozilo and Raj

The WSJ reports that the investigation of Lehman’s collapse “has hit daunting hurdles that could result in no civil or criminal charges ever being filed against the company’s former executives.” The problem is that, despite Lehman’s examiner’s conclusion that Lehman used tricks (the famous Repo 105) to “paint a misleading picture of its financial condition,” Linklaters ... Fuld, Mozilo and Raj

The SEC’s shrinking credibility

Peter Henning discusses “the SEC under fire”, specifically Beckergate, which I’ve already discussed, and Guptagate, which I’ve been mulling since Sorkin’s Dealbook column last Monday. Henning observes that “the questions being asked could undermine the agency’s credibility as an effective regulator of the securities markets.” As for Beckergate, Henning notes (in addition to the issues ... The SEC’s shrinking credibility

Appropriate Liability Rules for Tying and Bundled Discounting: A Response to Professor Elhauge

In recent years, antitrust scholars have largely agreed on a couple of propositions involving tying and bundled discounting. With respect to tying (selling one’s monopoly “tying” product only on the condition that buyers also purchase another “tied” product), scholars from both the Chicago and Harvard Schools of antitrust analysis have generally concluded that there should ... Appropriate Liability Rules for Tying and Bundled Discounting: A Response to Professor Elhauge

The SEC’s internal controls problems

The WSJ discusses yesterday’s testimony by SEC chair Mary Schapiro.  Former SEC GC David Becker, you’ll recall, had a family interest in a Madoff account but nevertheless was allowed to work on Madoff issues, including recommending Madoff victim payouts that directly affected the Becker family. Ms. Schapiro said the incident had taught her to be ... The SEC’s internal controls problems

Comment to the Federal Reserve Board on Regulation II: Where’s the Competitive Impact Analysis?

I have submitted a comment to the Federal Reserve Board concerning Regulation II, along with the American Enterprise Institute’s Alex Brill, Christopher DeMuth, Alex J. Pollock, and Peter Wallison, as well as my George Mason colleague Todd Zywicki.  Regulation II implements the interchange fee provisions of the Dodd-Frank Act. The comment makes a rather straightforward ... Comment to the Federal Reserve Board on Regulation II: Where’s the Competitive Impact Analysis?

An executive MBA in law

The Canadians show the way: The year-long program, which runs in the evenings and on weekends, will examine the impact of globalization on laws, legal institutions and capital markets. * * * “This is a way for people to engage, in a more in-depth way academically, those issues they’re facing at work.” * * * ... An executive MBA in law