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

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Facile claims of behavioral economics: too much choice; not enough privacy

Chris Hoofnagle writing at the TAP blog about Facebook’s comprehensive privacy options (“To opt out of full disclosure of most information, it is necessary to click through more than 50 privacy buttons, which then require choosing among a total of more than 170 options.”) claims that: This approach is brilliant. The company can appease regulators ... Facile claims of behavioral economics: too much choice; not enough privacy

An open letter on insider trading to Gene Fama and Ken French

[Post bumped to the top, and cross-posted at Organizations & Markets, in light of our technical difficulties last week and in the hopes of eliciting a response — Eds] Dear Gene and Ken: I must say that I was totally flabbergasted when I read your recent blog posting on insider trading.  I know that your ... An open letter on insider trading to Gene Fama and Ken French

Toy Story 3

I just attended the world premiere of “Toy Story 3.” No, I’m not in Cannes, New York, London, or Tokyo. I’m here in Chicago, where Pixar graciously screened the movie at the great new Icon Theater to raise money for Comer Children’s Hospital. (Full disclosure: my wife is a pediatric oncologist at Comer.) I’d love ... Toy Story 3

Judge Sullivan and the UPP: Much Ado About Nothing or Articulating the Real Problem with the New HMGs?

Much has been made of Judge Sullivan’s recent decision in City of New York v. Group Health Incorporated and its implications for the UPP test and market definition in merger cases under Section 7 of the Clayton Act.  Given the 2010 Proposed Horizontal Merger Guidelines’ (2010 HMGs) shift toward diversion ratios and margins and away ... Judge Sullivan and the UPP: Much Ado About Nothing or Articulating the Real Problem with the New HMGs?

Implicit Compensation

The expansive executive compensation literature has two camps: one camp believes markets generally work; the other that they don’t. I am in the former camp, but believe markets and individuals that comprise them make mistakes and that those with power can sometimes use that power to serve their own, selfish ends. The only difference between ... Implicit Compensation

More Details on the OFT's Botched Prosecution of British Airways

Here (HT: Danny Sokol).   The post by Andreas Stephan implies that the OFT’s mistakes in the BA prosecution threaten to undermine the effectiveness of cartel enforcement in the UK generally and predicts that the OFT will not bring more criminal prosecutions in the near future.   Stephan also provides some more detail on what apparently went ... More Details on the OFT's Botched Prosecution of British Airways

Some Links

Facebook hires recent Kirkpatrick Award winner Tim Muris to manage their antitrust and consumer protection business at the Federal Trade Commission (or did they?) My colleague Neomi Rao in the WSJ on the Kagan nomination The UK British Airways price-fixing trial implodes after the OFT didn’t turn over evidence (Businessweek) The FTC has, to its ... Some Links

Controlling ATM Fees: Competition Versus Political Fiat

Taking a page from Rahm Emanuel’s never let a serious crisis go to waste playbook, our esteemed senators are loading the pending financial reform legislation, ostensibly aimed at preventing future financial meltdowns, with all sorts of wish-list items that have nothing to do with financial crises. Iowa Senator Tom Harkin, for example, has introduced an ... Controlling ATM Fees: Competition Versus Political Fiat

The Proposed Merger Guidelines: How Much of a Shift?

The proposed Horizontal Merger Guidelines (HMGs) have been treated by some as a major shift in enforcement approach away from a tight structure that begins with market definition to a more flexible and open-ended competitive effects approach.  Some of the specific concerns that have been raised are that the proposed HMGs dramatically change enforcement policy ... The Proposed Merger Guidelines: How Much of a Shift?

Timothy Muris Wins FTC's Kirkpatrick Award

Congratulations to Former Chairman and current George Mason Professor Muris for taking home the Federal Trade Commission’s prestigious Miles W. Kirkpatrick Award for Lifetime FTC Achievement.   As Chairman Leibowitz notes in the press release, “Tim Muris provided inspired service to the Federal Trade Commission and to the American public.   He understood the value of combining ... Timothy Muris Wins FTC's Kirkpatrick Award

Apologies and comments

Dear readers:  Apologies for our site’s absence yesterday.  Apparently we were the target of a Russian spam attack.  We’re back up, but we’ve had to close comments for the time being (except from the TOTM authors and previous guests who may login to post a comment).  We’re working to get everything up and running again ... Apologies and comments

What’s the Best Way to Pop a Bubble?

[NOTE: I was drafting this post when Henry Manne posted his open letter to Fama and French. I’m hesitant to post over Henry’s important letter, particularly since TOTM was down yesterday and lots of folks may not have seen the letter. I’m doing so only because this post is a good follow-up to Henry’s points ... What’s the Best Way to Pop a Bubble?