Showing results for: “premium natural and organic”
Competition for the Field, Sirius/XM and Shelf Space
Geoff and Paul like the result in XM/ Sirius but are puzzled by the DOJ press release, in particular as it pertains to analyzing ex ante competition, or “competition for the field,” in the form of payments to automobile manufacturers to adopt their services. Geoff thinks the DOJ’s press release contains some funny language appearing ... Competition for the Field, Sirius/XM and Shelf Space
Franchising, Starbucks vs. Subway, and Promotional Services
Professor Bainbridge offers a correction to Keith’s Starbucks analysis by pointing out that Starbucks does not have franchisees. I don’t think the franchise/ franchisee distinction has much to do with Keith’s conclusion that whatever is going on is not an antitrust problem. But the Professor is on to a really cool question about franchising and ... Franchising, Starbucks vs. Subway, and Promotional Services
We Are Not Just Going to Stand Here, We Are Going to Do Something!
That seems to be the message of presidential candidate/ Senator Barak Obama’s response to the American Antitrust Institute’s questions on antitrust (HT: Antitrust Review). First off, kudos to Obama for stating his position on antitrust in a public forum. I hope the rest of the candidates will do the same. Do go read the whole ... We Are Not Just Going to Stand Here, We Are Going to Do Something!
Shelf Space Payments and Retail Bargaining Power
At his new blog Management R&D, Luke Froeb writes about the strategy of downstream firms reducing capacity in order to increase competition among suppliers: To gain bargaining power, some firms reduce capacity to increase competition among their suppliers. For example, health insurers restrict the number of drugs on their formularies or the number of hospitals ... Shelf Space Payments and Retail Bargaining Power
Newsflash! AAI supports merger review!
In shocking news, the American Antitrust Institute has come out with a white paper suggesting that the FTC’s challenge of the Whole Foods/Wild Oats merger is warranted (HT: Hanno): The FTC cites to numerous factors and questions that make a highly compelling case for looking closely at whether a Whole Foods/Wild Oats combination will tend substantially to ... Newsflash! AAI supports merger review!
Whole Foods: Where's the [premium, natural and organic] beef?
John Mackey posts a remarkable public response to the FTC, including the complete text and extended exegesis of one of the inflammatory hot docs that prompted the FTC’s action. But most amazing of all is this comment: The claims that the FTC makes in the above two paragraphs [from the FTC press release] are simply ... Whole Foods: Where's the [premium, natural and organic] beef?
Premium natural and organic bulls**t
It appears that the FTC is moving to stop the proposed Whole Foods/Wild Oats merger. Says the FTC: If Whole Foods is allowed to devour Wild Oats, it will mean higher prices, reduced quality, and fewer choices for consumers [in the premium natural and organic supermarkets market]. That is a deal consumers should not be ... Premium natural and organic bulls**t
Warren on Rationality, Choice, and Regulation in the Credit Card Market
Elizabeth Warren (Credit Slips) points to an interesting empirical study by Agarwal, Liu, Souleses, and Chomsisengphet (“ALSC”) which examines consumer credit card selection in a natural experiment setting in which a card company offers two cards to consumers: (1) a high interest rate, no annual fee card and (2) a low rate card with an ... Warren on Rationality, Choice, and Regulation in the Credit Card Market
Bundled Discounts, Exclusive Dealing, and Liability Rules: Thoughts on Crane and Lambert on Bundled Discounts
Dan Crane and Thom (who has promised more remarks!) have now both posted their prepared remarks for the Section 2 hearings panel on bundled discounts. Both call for bright-line, administrable liability rules for all forms of unilateral exclusionary conduct, and have important things to say about designing antitrust rules for bundled discounts. Both are worth ... Bundled Discounts, Exclusive Dealing, and Liability Rules: Thoughts on Crane and Lambert on Bundled Discounts
Interest Rates and Antitrust
Today’s Israeli newspapers have an interesting story about a multibillion dollar antitrust suit that an Israeli manufacturing firm has brought against Israel’s three major banks. The complaint alleges that the banks price colluded on rates, charging identically in five distinct rate categories: a uniform prime rate always 1.5% above the central bank’s; a uniform risk ... Interest Rates and Antitrust
Economic Illiteracy of the Week?
Via Ted Frank at Point of Law, the House has overwhelmingly passed a price gouging bill that will not help consumers, but on the bright side, is likely to provide a fresh example for microeconomics instructors teaching the consequences of price controls. The award for economic illiteracy of the week goes to the whole House, ... Economic Illiteracy of the Week?
Do Slotting Contracts Harm Consumers?
Warning: shameless plug of my own research to follow! Slotting allowances, or payments for shelf space, have been a central part of my research agenda for the last several years. My work with Ben Klein, The Economics of Slotting Contracts, presents a procompetitive theoretical explanation (and some aggregate data in support of our theory) for ... Do Slotting Contracts Harm Consumers?
