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

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Business Law and the Austrian Theory of the Firm

My Missouri colleague, Peter Klein, of Organizations and Markets fame (and, like Larry, a proud non-voter), has been asked to contribute a book chapter on the Austrian theory of the firm and the law. Peter, who has written extensively on the Austrian theory of the firm and maintains an online bibliography on the subject, is ... Business Law and the Austrian Theory of the Firm

Some Economics of Contractual Restrictions on Political Contributions by Cable Pundits

Jonathan Adler and Orin Kerr chime in over at VC to make the point that MSNBC’s rules against contributions from television personalities is pointless, or perhaps counterproductive.  Here’s Adler: I agree with Orin that strict application of rules against political activity by journalists to opinionated commentators and hosts is silly.  No one believes these figures ... Some Economics of Contractual Restrictions on Political Contributions by Cable Pundits

Foreclosure lawyers as mortgagees

The NYT reports on foreclosure lawyers who are getting paid contingency fees for mortgage savings, and are themselves getting mortgages from their clients to secure their fees: The Ticktin mortgages resemble the loans that the clients originally got from Countrywide, GMAC and other lenders. Each will be a contractual obligation with the law firm, labeled ... Foreclosure lawyers as mortgagees

Following the sun, or not

From Nick Rowe (HT MR) (see also): [L]et T be the time everybody else chooses, and let S be the time the sun chooses. So my reaction function is t = R(T,S). Assume that dR/dT>0, dR/dS>0, and dR/dT+dR/dS=1. What this means is that if everybody else gets up one hour later, I will get up (say) ... Following the sun, or not

Don’t blame me, I voted for nobody

Illinois has filled the Obama seat with a Republican.  Too bad for the Democrats that (1) Blago couldn’t sell the seat; and (2) they didn’t want an election back when they could have elected a Democrat. And now Senator Kirk will be able to vote to continue the Bush tax cut in the lame duck ... Don’t blame me, I voted for nobody

Movies, capitalism and anti-semitism

Jean-Luc Godard’s getting an honorary Oscar which, as the NYT reports, presents a problem.  Godard is “an avowed anti-Zionist and advocate for Palestinian rights,” and made a documentary which included alternating images of Golda Meir and Adolf Hitler.  Most notably for present purposes, he told Le Matin in 1985: “What I find interesting in the ... Movies, capitalism and anti-semitism

FTC Settlement Finalized

The FTC settlement with Intel has been finalized with one change the Commission’s press release describes as follows: After considering public comments, the FTC modified the proposed order to allow Intel to manufacture and sell a chip that it had in development before the proposed order was negotiated, but that would violate that order because ... FTC Settlement Finalized

Patent Thickets: Lessons from the Sewing Machine War

My colleague Adam Mossoff’s wonderful paper, A Stitch in Time: The Rise and Fall of the Sewing Machine Patent Thicket, was featured in a WSJ article focused on drawing implications for the smartphone market by studying our experience with the sewing machine patent pool.  Professor Mossoff is optimistic about the opportunities for players in the ... Patent Thickets: Lessons from the Sewing Machine War

Election 2010 and Financial Services Politics

I thought it would be interesting to blog some of the rumors currently circulating about what the election will mean for the makeup of the House Financial Services Committee and the Senate Banking Committee.  The makeup of the Senate Banking Committee is, I would argue, the single most important driver shaping financial services legislation.  The ... Election 2010 and Financial Services Politics

When Google’s Competitors Attack …

We’ve discussed the all too common tactic in antitrust of rival’s complaining to government agencies to get them to bring antitrust complaints.  There is nothing particularly special about this tactic.  As I’ve pointed out in the context of allegations by Microsoft and Microsoft-supported rivals of Google, conventional economic reasoning suggests that, without more, complaints from ... When Google’s Competitors Attack …

A new argument against federal proxy access

Dodd-Frank included new federal rules regarding proxy access, which have significant problems. Now a new paper by Becker, Bergstresser and Subramanian provides an additional argument against these rules, Does Shareholder Proxy Access Improve Firm Value? Evidence from the Business Roundtable Challenge.  Here’s the abstract: We measure the value of shareholder proxy access by using a ... A new argument against federal proxy access

Indoors and outdoors whistleblowing

Today’s WSJ notes criticism of Dodd-Frank’s bounty provision for whistleblowers on the ground that it undermines the internal reporting provisions of the previous financial law, Sarbanes-Oxley.  The WSJ notes that plaintiffs lawyers eager to handle complaints on behalf of whistleblowers are getting the word out, issuing press releases and publishing articles about the new law ... Indoors and outdoors whistleblowing