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

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What Am I Missing About Antitrust Exemptions?

Geoff mentions the pending bills on the Hill that would grant merchants an antitrust exemption to negotiate interchange fees.  The insurance industry exemption has also been in the news of late in the wake of the Democrats’ threats of repeal.  Here’s what I’m puzzled about.  Other than self-interested parties that have a lot to gain ... What Am I Missing About Antitrust Exemptions?

Don't kill interchange fees

Speaking of Josh’s co-author, David Evans,  David just testified the other day before the House Financial Services Committee on a bill, the Welch Bill, HR 2382, that would regulate the fees banks charge to each other to process credit card payments.  The Welch Bill is actually only one of three pending bills that would regulate ... Don't kill interchange fees

Mathematical Elegance is Not Economics: Another Implication of the Nobel Prize in Economics?

Lots of good reactions to the Nobel for interested readers.  This post from Lynne Kiesling and this from Peter Klein (Williamson’s last student) are a good place to start as is just about anything over at Organizations and Markets the last few days.  My earlier thoughts are here, including some disappointment that the prize was ... Mathematical Elegance is Not Economics: Another Implication of the Nobel Prize in Economics?

Don't Kill Credit

My co-author on this paper on The Effect of the CFPA Act of 2009 on Consumer Credit, David Evans, has a great post over at Catalyst Code on the importance of access to consumer credit during tough financial times.  Here’s the key paragraph: Unfortunately, an awful lot of the proposals that are being floated in ... Don't Kill Credit

Not From the Onion

Good news. The incoming German government under new Chancellor Angela Merkel says that it is doesn’t plan to “go wild” breaking up companies under the stronger antitrust laws it is considering.   See.  Nothing to worry about.

Nobel to Ostrom and Williamson (WITH UPDATES)

Excellent choices.  Congratulations to Elinor Ostrom and Oliver Williamson in a prize for economic governance, the former for the commons and the latter for the boundaries of the firm!  A prize aimed at the economics of institutions and governance, the theory of the firm, and work that has been important for law and economics generally ... Nobel to Ostrom and Williamson (WITH UPDATES)

Will the Public Insurance Plan Be a Predator?

Wall Street Journal columnist Thomas Frank inhabits a simple little world in which private enterprise, in its relentless pursuit of profit (i.e., charging more for something than it’s worth), is consistently a force for evil, and government, populated by wise and benevolent folk who have eschewed riches in favor of public service (see, e.g., Ted ... Will the Public Insurance Plan Be a Predator?

Evans and Wright on The Effect of the CFPA Act of 2009 on Consumer Credit

David Evans (University of Chicago; University College of London) and I have posted to SSRN our draft, The Effect of the CFPA Act of 2009 on Consumer Credit. Here’s the abstract: The U.S. Department of the Treasury has submitted the Consumer Financial Protection Agency Act of 2009 to Congress for the purpose of overhauling consumer ... Evans and Wright on The Effect of the CFPA Act of 2009 on Consumer Credit

What's Wrong With the Endowment Effect?

Gordon Smith asks the question in response to a 16 part post (with slides and pictures!) from John Carney offering up the explanation that the behavioral economists have overclaimed and that “the Endowment Effect may really be a response to the counterparty risk faced by early humans.”  Larry Ribstein chimes in with support for Carney ... What's Wrong With the Endowment Effect?

The Economics of Judicial Salaries: Justice Roberts v. Judge Judy

A commentator observes that the salary disparity between Chief Justice Roberts (roughly $220,000) and Judge Judy (roughly $25 million) is the “result of markets” and asks the following question: “is there any reason to assume that simply because the market has delivered that outcome, that Judge Judy deserves to make 100 times more than Chief ... The Economics of Judicial Salaries: Justice Roberts v. Judge Judy

Quick Reaction to the Leiter Poll on Best Faculties in Law and Economics

Brian Leiter conducted a poll where voters (anybody, apparently could vote with a poll restricted to specialists to come later) could rank the top law and economics faculties from a list of the individual scholars on those faculties.  Here are the results followed by a few first impressions: 1.  Harvard University 2.  University of Chicago ... Quick Reaction to the Leiter Poll on Best Faculties in Law and Economics

Georgetown L&E Workshop

Great workshop and excellent written and live questions on the “Is Antitrust Too Complicated for Generalist Judges” paper (with Michael Baye) from the students and attending faculty.  Thanks to hosts Kathy Zeiler and Josh Teitelbaum.  I’ve posted my slides here for interested readers.