The Archives

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

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Is the Intel/AMD Settlement Illegal?

So, AMD and Intel settled.  Its a case we’ve covered here in significant detail.  Terms haven’t been announced publicly.  AAI has predictably argued that the settlement shouldn’t preclude further enforcement action from NY and the FTC.   The NY Times suggests the same.  They may be right, although Herb Hovenkamp, among others, has suggested that the ... Is the Intel/AMD Settlement Illegal?

PeaceHealth and De Facto Exclusive Dealing, Part III

Josh’s thoughtful response (Bitchslap? Nah.) to my post criticizing the Ninth Circuit’s recent Masimo decision raises a number of important matters. I started to just submit a comment to Josh’s post, but then I figured a reply was post-worthy. (I don’t want the antitrust nerds who read these technical posts — and here’s to you, ... PeaceHealth and De Facto Exclusive Dealing, Part III

Hedge Funds & The SEC

Thanks so much to my new colleagues at Truth on the Market for inviting me to join an impressive group of scholars on a blog I have followed for many years now. Chairman Frank of House Financial Services has an interesting thought on how to prevent the next financial crisis.  Let’s require hedge funds, along ... Hedge Funds & The SEC

Gelbach, Helland and Klick on Single Firm, Single Event Studies

Larry Ribstein points to the new paper from Gelbach, Helland and Klick on Valid Inference in Single Firm, Single Event Studies.  This is an important paper with implications for finance, securities litigation and antitrust where event studies are frequently used as economic expert evidence.  Ribstein gives a good, non-technical explanation of its contribution: Essentially what’s ... Gelbach, Helland and Klick on Single Firm, Single Event Studies

Should PeaceHealth Apply to De Facto Exclusive Dealing Claims?

Thom answers this question in the affirmative in his excellent post about the Ninth Circuit’s analysis in Masimo and is disappointed that the Ninth Circuit rejected the discount attribution standard as the sole test for Section 2 in favor of a separate inquiry as to whether the bundled discount arrangement resulted in a substantial foreclosure ... Should PeaceHealth Apply to De Facto Exclusive Dealing Claims?

Hayek and the Fall of the Wall

As we reflect back on the remarkable events of twenty years ago, and as we witness more and more centralized economic planning in our own society, we should pause to remember what the fall of the wall revealed. Consider Alan Greenspan’s account (The Age of Turbulence, pp. 131-32): Controlled experiments almost never happen in economics. ... Hayek and the Fall of the Wall

Oracle is nonplussed; the DOJ is . . . plussed?

The European Commission has issued a Statement of Objections in response to Oracle’s proposed acquisition of Sun.  The deal had already cleared the DOJ’s review.  Oracle is none too happy about the development, issuing a strongly-worded statement.  Here’s a taste: The database market is intensely competitive with at least eight strong players, including IBM, Microsoft, ... Oracle is nonplussed; the DOJ is . . . plussed?

The CFPA's Effect on Consumer Credit and A Wager Proposal for Professor Levitin

Professor Adam Levitin is not impressed by our prediction of the effect on consumer credit of the CFPA.  Readers might recall that, using estimates from the literature on the effect of regulatory shocks on interest rates and of the long-term debt elasticity, we offered a (in our words) “rough calculation” of the “lower bound” of ... The CFPA's Effect on Consumer Credit and A Wager Proposal for Professor Levitin

As New York goes, so goes the FTC?

The New York Times is reporting that New York’s attorney general, Andrew Cuomo, has filed an antitrust suit against Intel.  According to the report, The New York move increases the chances that the F.T.C. will take action against Intel, according to a person who was familiar with the state’s investigation but was not authorized to ... As New York goes, so goes the FTC?

PeaceHealth Should Apply Even When a Bundled Discount Results in "De Facto" Exclusive Dealing

The Ninth Circuit, whose PeaceHealth decision moved the law on bundled discounting in the right direction, recently issued another decision on bundled discounts. That decision, Masimo Corp. v. Tyco Health Care Group, L.P., threatens to limit PeaceHealth‘s effectiveness. Medical device manufacturer Masimo sued Tyco for monopolizing the market for pulse oximetry devices. A monopolization action ... PeaceHealth Should Apply Even When a Bundled Discount Results in "De Facto" Exclusive Dealing

Some Links

Get your Jones v. Harris fix from (including reactions to oral argument) the Glom and Professor Bainbridge (my earlier thoughts on some economic aspects of the decision here and here) Kenneth Anderson has been a great addition to the Volokh Conspiracy Are Microsoft, Yahoo and Google really dropping support for Net Neutrality? Krugman attacks Mankiw ... Some Links

Of Broken Windows and Broken Policy

Today the Obama administration announced with great pride that its economic stimulus plan created or saved about 650,000 jobs.  “Thank goodness!” reads the subtext.  If not for all those new and protected jobs, the unemployment numbers would be really bad! It appears no one in the administration’s economic advisory team has heard of Frédéric Bastiat.  ... Of Broken Windows and Broken Policy